If you are looking for a way to make money in the current real estate economy and think that there is no way that you can do anything with the real estate recession, consider starting a rent to own program. You can do this in several different ways. You can either purchase property that is already vacant because it has been foreclosed upon or purchase property that is in the process of foreclosure. With both instances, you can then mortgage the property and get the tenants to pay you rent covering the mortgage and taxes.

Part of the rent that the tenant pays to you will be put in an escrow account as part of their down payment for when they eventually purchase the property. The purchase price has been agreed upon beforehand. It should naturally be more than the amount for which you purchased the property so that you can make a profit.

The renter then has a certain amount of time to purchase the property from you. This means that they need to secure a mortgage for themselves as well as continue to pay rent. It also means that they have to come up with the rest of the down payment. They have a certain amount of time in which to do this. If they do not come up with the money and the mortgage within the specified time period, you can renegotiate the contract or evict them.

The rent to own idea is not a new one but makes sense in the recession real estate economy. Because there are so many people going into foreclosure who do not want to leave their homes, you can be doing them a service and allowing them a year to get back on their feet. You can lower the amount of their monthly mortgage payment by refinancing the property at the rock bottom interest rates that are currently available. You have to make sure that this is a viable option for you as well as a potential to earn a profit. If the people who are going into foreclosure manage to bounce back and can then come up with the money for the home in the specified time, both parties win. You make a profit and they get their home back. If not, you have the home. You can always try the rent to own idea with another interested party.

If you are considering becoming a landlord, you should definitely consider the rent to own idea. This insures that the tenant will take better care of the home. Many landlords complain that tenants do not take care of property that they have no intention of owning. Some tenants can be really destructive. If you are offering a rent to own program, however, you can give the tenant an incentive to keep the place looking nice as they will hopefully be the owners of the property someday.

There has never been a better time to buy cheap and hang onto property. The houses are priced lower than ever and the interest rates are also lower than they have been in decades. Take advantage of these two facts and buy rental property using the rent to own strategy.