TenantBuyerList.com builds lists of tenant/buyers that are searching for "rent to own" homes nationwide. Often, home owners and landlords will ask us if we have buyers for their particular home. The answer: It depends. Watch the informative video here to get the full answer and see if selling your home, rent to own, is right for you.
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Naturally, when you sell your property, "Rent-to-Own," you do so with the hopes that the tenant-buyer will actually exercise their right to buy the home, called the "Option" and cash you out.
But it doesn't always work out that way, right? In fact, some estimates have it that 30-50% of tenant-buyers actually exercise their Option to buy property. So what should you do? Your tenant-buyer calls you and says something like...
" Hey... sorry but I can't buy your house now"
...or they might say... " Hey... sorry but I don't want to buy your house now " After all, it is the "Option" to buy and the "Option" not to buy, right?
Alright Timeout.
Let's Consider the Following...
With the clear understanding that most sellers we will work with would really prefer to sell their home at a fair price in today's market and get fully cashed out, let's take a look now at the alternative options available, assuming getting cashed out is not possible for one reason or another.
What You Get with a Conventional
Tenant and Rental
With a conventional tenant and rental, you get from your tenant:
What You Get When You're Selling Your Property,
"Rent-to-Own" On Terms ...Instead of for Cash Today
With a non-conventional Lease-Option ("Rent-to-Own") agreement, you get from your tenant-buyer:
Let's Look At The Worse Case Scenario
If Your Tenant-Buyer Were Not To Buy
Assuming your tenant-buyer did not exercise his or her Option to buy your property, and assuming they've made their monthly payments on time for the entire term, you could simply take the property back.
You could then "repackage" the property and sell it again and possibly at an increase in value. If the property has gone up in value during the lease term, and the tenant-buyer decides to give you the property back, you can always sell it again at a higher price. Or, you may decide you want to keep it as a rental for cash flow and continued appreciation. If the tenant-buyer fails to make their payments on time, however, you could always evict them as a Lease with the Option to buy is not a sale, contrary to people who are confused with the Dodd Frank law, etc. Since a Lease with the Option to buy is not a sale, but the Option to buy the property (and the Option not to buy it), the owner of the property, you, can evict the non-paying tenant-buyer just as you would if you were to lease the property (only) like a landlord does. In essence, you get the benefits of:
Most real estate investors who've bought a few single family homes to help fund their retirement are not excited about being landlords.
The reason is because being a landlord requires to answer late-night calls regarding leaky faucets, leaky roofs, and other problems that go with being a housing provider. Many landlords become disenchanted with their investments and ultimately decide to sell so they can free themselves up from all of the hassles and complaining tenants, so they can enjoy their lives again. But when you sell, "Rent to Own," at least in the way that we do this kind of transaction, our home owners never have to be a landlord at all.
List your home with us and get instant access to thousands of eager-to-buy tenant/buyers waiting to see your home, absolutely free here. Sincerely, Richard Israel TenantBuyerList.com P.s. If you haven't watched our free, 15-minute, content-rich video showing you how to sell your home for your full asking price while paying zero in commissions or fees, click here now.
Typically when you sell, "Rent-to-Own" through our program, our tenant/buyer will have to be responsible for the first $5000 in any/ all repairs of the house in exchange for the Option rights. A good idea for you to consider to overcome any potential objections you might get (though rare) is to purchase an affordable Home Insurance (HOI) policy to cover both of you in the event a home inspection by the tenant/buyer (also rare for some reason) reveals:
Here's a quick video explaining what is covered with Home Insurance
If you need help with home insurance or have any questions, please fill out the comment box at the bottom of the page and i will help you get the information needed.
Section 1031 of the Internal Revenue Code contains arguably one of the most powerful provisions of the tax code for real estate investors... the 1031 tax exchange. Many highly successful real estate investors have used this tax code provision in combination with aggressive pyramiding and upgrading strategies to amass huge investment property portfolios. Here's how it works:
OVERVIEW A Section 1031 Exchange allows you to exchange "like-kind" investment properties without triggering the payment of capital gains tax. As your property assets appreciate in value you have the ability to upgrade into larger properties with greater cash flow. Section 1031 also gives you the flexibility to exchange your rental properties that have appreciated in value in hot markets, and re-invest into lesser-known areas that are expected to develop and become the next hot market in years to come. You can continuously defer these capital gains taxes as you continue to pyramid your property investment portfolio into larger and larger properties. 1031 EXCHANGE BENEFITS There are a lot of benefits to considering the use of a 1031 exchange: TAX DEFERRED INVESTING The ability to re-invest your entire property equity without tax erosion can significantly enhance the amount of capital that stays invested and can make it easier to upgrade into higher value properties with greater cash flow. INCREASE CASH FLOW This decision to upgrade into higher quality properties with greater cash flow can occur faster now that taxes are a lower priority transaction decision. In some markets the real estate values can get ahead of the available cash flow available from the property. In these situations it may make sense to lock in your gain and look to re-invest in another property where you can achieve higher cash flow returns. TIMING THE MARKET The ability to speculate on the next hot market area or region is a much easier decision under a 1031 exchange. Why not lock in your profits on property that has already risen dramatically in value and re-invest it in the next hot market? As long as your capital gains are deferred making these transaction decisions is easier. COMPOUND RETURNS If you are stepping up your portfolio through a series of exchanges over time your full capital gain can be re-invested without tax consequence, resulting in accelerated equity accumulation. FLEXIBILITY The ability to switch into "like-kind" properties as defined in the tax code gives you a range of investment options and flexibility. If you don't want a lot of the headaches associated with managing property you can also consider Tenant in Common exchanges, which do qualify under Section 1031 of the tax code. CONCLUSION 1031 tax exchanges gives real estate investors a lot more options and flexibility to make better investment decisions on their real estate holdings without the issue of tax over-riding sound judgment. If you own a rental property or are considering it you owe it to yourself to see if a 1031 exchange is right for your circumstances. If you're interested in selling your home, "Rent to Own" while paying zero in commissions and fees, click here now to learn more. Sincerely, Richard Israel TenantBuyerList.com
"How to Get Your Full Asking Price & Pay Zero Commissions or Fees."
Selling successfully on a "Lease-Option" often means giving great terms to get a better-than-market price for your home. Lease-Option tenant-buyers buy for 4 general reasons. They are:
Needless to say, Lease-Option buyers are willing to negotiate a higher price for your home, in exchange for "forgiveness" with one of the above mentioned items. Obviously, you never want to put someone in your home that is a blatant risk of not paying or destroying your home. So the key is to do what banks used to do to qualify potential buyers: Manual Underwriting... This is true whether you are selling your home, "rent to own" or just renting it. You should look at your prospective renter-buyer's entire financial picture...not just their computer-generated credit scores. Banks and landlords with experience will agree with the above statement, since they know that credit scores alone do not tell the whole picture. In 2008-2010, there were many folks that banks would lend money to with "good credit scores" only to have them foreclose shortly thereafter. Whoops... And many landlords, who do not want to be landlords, often pass up on doing a Lease-Option, because they assume all tenant-buyers have bad credit and will destroy their house. So they decide to remain landlords, fix leaky toilets and roofs, continue to pull their hair out, and grow to dislike real estate more and more. Whoops... We recommend you not take this path. If you're going to say, "No" to doing a Lease-Option, at least do so after you've fully informed yourself first, so you don't miss out. Learn more about the Pros and Cons of selling on a Lease-Option ("Rent-to-Own") here. Allow us to custom-design an offer that will combine with your specific needs and wants. We think you'll be glad you did. Click here to learn more now. Sincerely, Richard Israel TenantBuyerList.com P.s. If you'd like to learn how you can get your full asking price, pay no fees or commissions, and do it all in just 7 to 14 days, give us a call or click here now.We'll see you on the other side.
What difference does it make when you sell on a Lease-Option v. a Land Contract (A.K.A. Contract for Deed)? What are the main differences between the two and how does it affect each part involved?
Lease with an Option to Buy ("Rent-to-Own"):
Sincerely, Richard Israel TenantBuyerList.com
The Main Reason: It's priced wrong.
That's it. I could finish this blog post right now, if I wanted to. No matter what your Realtor says, or what you believe about all of the market data you've compiled, the simple reason why your property has not rented or sold yet is it is priced wrong. Think about it. There's only one true way to know if your Realtor's Comparative Market Analysis is accurate or not. Simply list the home for a week. If no one comes to see the home and subsequently make an offer on it, it's priced wrong. This, of course, assumes all other variables are held equal (it's listed correctly in the MLS, it is actually being advertised, etc.). Solutions?
If you want expert help, from active Lease-Option investors with 5 years experience online, and 10 additional years offline as a Realtor and Mortgage Broker (at no cost to you at all) click here now. We're here to help. Sincerely, Richard Israel TenantBuyerList.com P.s. We are not licensed agents/brokers and do not represent anyone but ourselves. We act only as Principals in each transaction, assigning our legal interests (the Option rights) over to our "end" tenant/buyers for a fee that only they pay us. That's why all that we do is free to you. Click here now to join our free program. You'll be so glad you did.
The short answer is no.
When you sign up with our free, "Rent to Own" program, we do no lock you in and the agreement is not mutually exclusive either. We're not in the business of trying to trap people in an agreement they do not want to be in. Deals like that only blow up eventually anyway. So, our goal is to first educate you, give you a tour of our free program, answer any and all questions you may have, and then let you decide. We've been online since 2009 and have grown each and every year in revenue for one reason only: What we do works. Period. So... our program is no longer under the microscope like most companies that venture out in the online space. And because of this fact, we do business with confidence and do not put any "handcuffs" on the home owners we work with. Obviously, if we bring a tenant/buyer to you that you decide to keep, we expect to be paid in full. But if you find someone on your own, you are free to cancel anytime. Or if you decide you simply cannot, or do not wish to sell any longer, we'll still let you out of the agreement. It's that simple. We only get paid when we perform the tasks we promised you we would. Fair enough, right? So, no. You truly can cancel anytime, and we will never ask you for any fees or commissions. We are not Brokers and do not represent you or the buyer we work with either. We represent ourselves only and act as a Principal in each and every transaction we do. You, as the home owner/ seller, will also be acting as a Principal just like us, so the nature of our respective goals and roles within this transactions are similar. Hope that's helpful, Richard Israel TenantBuyerList.com
It's not complicated.
You simply want to create a frenzy of hungry tenant/buyers with money-in-hand, ready to make an offer on your property.You want to be in control of the process, so as to avoid getting insulting offers on your property from people who are not really interested in your property in the first place. Here's what you do:
We've used this approach numerous times since 2009, and it works like a charm, because it weeds out the non-serious tenant-buyers and allows to spend the necessary time we need to with the serious ones. Try it with us. You'll be so glad you did, Richard Israel TenantBuyerList.com P.s. If you get stuck at any point in the process, or when you have several people come into the home at once, call us. Also, ensure you have someone else from your family there with you for safety reasons, and keep the front door open. Never show the home alone. Never. If you're asked about pricing and terms, simply refer the tenant-buyer to call us at (253) 302-0330. We'll answer any questions about the program, pricing, and terms for you. Learn more here now for free with this info video. |
AuthorRichard Israel is a seasoned, wholesale real estate investor specializing in creative seller financing exit strategies. ArchivesCategories
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