Russ Hemmis is a self-taught carpenter and founder of Rent to Own (RTO) Investments, a successful real estate investment company assisting first time home buyers. RTO Investments specializes in purchasing fixer-upper homes, giving them a quick facelift and then offering them on a rent-to-own basis. However, RTO distinguishes itself by applying 100 percent of rent money paid toward the purchase of the home, rather than just a portion.

The idea came from a friend in Australia who had a similar rent-to-own business, and gave 100 percent of the rent paid by tenants back to them as a down payment on their first home. Interested in trying something similar in California, Russ began purchasing rental properties. However, having paid most of his investment into actually acquiring the properties necessitated a polishing up in his carpentry, electrical, plumbing, drywall and cabinetry skills. The first dozen houses served mostly as trial-and-error. However, the process eventually evolved into a system, and RTO Investments was born.

Russ continued to purchase homes in areas like Lancaster, Palmdale and Bakersfield where nice three-bedroom/two-bath homes were selling for under $200,000. Russ was careful to select homes that had been on the market for longer periods of time, as these homes are more easily bargained for. It is because of this that home were mostly in need of yardwork, new flooring, walls repair, replacement of sinks and faucets. Careful choice in properties restricted loss for the company, as a few thousand dollars of correctly-done surface repair (generally out-of-pocket) would increase the value of the homes dramatically.

About two weeks later, the home are ready to be put up for a one-year or 18-month lease. At the end of the lease, tenants will purchase the property, with 100 percent the rent paid applied to the balance. But RTO doesn’t stop there – they also work with tenants to improve their credit, so when the home is actually purchased, the tenet’s credit is also greatly improved. Russ has recently moved the company and investment properties closer to Hollywood.

Learn more at:
www.hgtv.com/russ-hemmis