Failure can be your biggest and best teacher. Looking back, I’ve learned the most from my mistakes. It took Adam Zach a couple of tries before he got the model for Set Your Rent just right. I love it because he takes an idea I had a couple of years ago and builds on it, creating an amazingly successful business that helps entrepreneurs, self-employed people, and anyone who struggles to get into a traditional mortgage still find a way to buy a home.
Adam decided to guarantee real estate success from the beginning by buying a property with equity. But the ARV was enormous. Then he decided that the key to success was purchasing a property with tenants. But then the tenants moved out. That’s when he got closer to success by coming up with what he calls Set Your Rent version 1.0.
His original theory was a solid one. He decided to find the tenant buyers first before buying a property. Since he had experience renting to fellow students when he was in college, he decided to rent to a group of college students. Unfortunately, college students eventually graduate and leave town, which puts him back at square one to find a tenant-buyer.
Set Your Rent version 2.0 still focuses on tenant buyers, but lets Adam leverage the fact that he has a credit score of 800, and that he’s staying in the middle between the bank and a landlord. Since he made the pivot into this better, more lucrative lease option model, he’s increased his gross revenue to $40,000, for an average cash of $300-500, depending on the price of the home. And he doesn’t need a property manager and he doesn’t need to worry about maintenance repairs.
He’s doing some amazing creative financing, and he’s expanding nationally. Connect with Adam by emailing him: firstname.lastname@example.org.
Watch and Learn:
Listen and learn:
- What can you put down as responsibilities for a lease option? It depends.
- Why it’s better to sell a lease option, and how a contract for deed plays into this.
- Going with character over credit makes it a little easier for an entrepreneur to get a home loan, and that’s a niche that Adam leans into.
- How Adam’s finding private money to fund his lease option deals.
Mentioned in this episode:
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