| The real estate market is soft. It is truly a buyers | | | | greater. I like to see a minimum of 5% of the |
| market. In addition, the ability for a buyer to | | | | purchase price paid upfront. |
| secure a new mortgage has reached | | | | The wording of the lease must also include a |
| unprecedented levels craziness. To get a new | | | | statement that the renters, because they are |
| mortgage these days, a potential buyer has got | | | | buyers to be, will be responsible for all upkeep, |
| to have almost pristine credit along with backup | | | | maintenance and repairs. In other words, they do |
| savings and a long, stable work history. | | | | not call you when the water heater goes out or |
| I am in the business of buying investment homes | | | | the toilet backs up. They agree to take on all |
| and then selling them for a profit. In the following | | | | those responsibilities. |
| paragraphs, I am going to describe how you can | | | | You will then write up a separate option |
| sell your house quickly. You will not have to pay | | | | agreement. The option period should coincide with |
| realtor commissions. You will not have wait 45 to | | | | the term of the lease. the option allows the |
| 60 days while your buyer gets a blessing from his | | | | renters to buy your house in a specified period of |
| mortgage company. You will not have to put up | | | | time at a set price within that period of time. The |
| with all the back and forth price dickering. You will | | | | option agreement should state that the damage |
| truly have the upper hand here. | | | | deposit from the lease agreement is to be applied |
| The very first you need to do involves some | | | | to the purchase price of the house. The |
| work. Your house needs to be marketable. Now, I | | | | agreement should read that the option deposit is |
| am not going to go into all the specifics of | | | | nonrefundable. |
| updating your house here. You will find that in | | | | If your would be buyers turn out to be not so |
| some of my other articles. Suffice to say, drive | | | | good or walk away from the lease, remember |
| up appeal needs to be good, the inside of the | | | | that you have a very sizable damage deposit with |
| house will need to be updated, uncluttered and | | | | which to get the house ready for a new buyer |
| clean. | | | | and pay for your mortgage during the down time. |
| Now that your house is ready, take pictures of | | | | This is a great deal for the buyer who cannot |
| the outside front, living areas, kitchen and baths. | | | | quite qualify for a mortgage. They get to move |
| Take some time and search your area online for | | | | into a great home right away with very little |
| three good web sites to place an ad. Craigs List | | | | resistance. Meanwhile, the option allows them time |
| might be one of them. Your ad headline will read | | | | to fix their credit report and lower their debt to |
| something like this: Rent To Own Home. Easy | | | | earning ratio or whatever else they need to do to |
| Qualify. | | | | qualify for a bank mortgage. |
| I know what you are thinking, I do not want to | | | | But most of all, this is a great deal for you! You |
| be a landlord. I know, I get it. But read on, it gets | | | | set the price. You get a substantial amount of |
| better. | | | | money upfront. The renters pay your mortgage |
| The type of buyers we are going to attract are | | | | for you. You make an additional monthly income |
| people who may be self employed. They make a | | | | on the positive cash flow from the rent. You do |
| good living and have cash but do not necessarily | | | | not make repairs or become a landlord. When it |
| show a great deal of income, because of expense | | | | comes time to sell, there are no realtor |
| allowances, on their 1040 tax form at the end of | | | | commissions to pay, among a host of other |
| the year. Your buyer may also be coming off a | | | | normal costs like a homeowner warranty. |
| divorce that forced them to into a bad situation. | | | | When the day arrives that your renters call you |
| There are other scenarios, but basically you have | | | | and say they are qualified and ready to buy the |
| good people. | | | | house, you will meet with them and write up a |
| Your offer to a potential rent to own buyer is | | | | purchase agreement. The purchase agreement will |
| this: You will lease the house to them for a | | | | state the price they will pay for the house, which |
| specified period of time. Typically, one year is | | | | side will pay for each type of closing costs and |
| good. The amount of rent paid should be more | | | | the date that the closing will take place. Everyone |
| than the amount you need to pay each month on | | | | involved will need to sign and date. If a person is |
| your mortgage. That includes taxes, insurance, | | | | married, most states require the spouse to sign |
| p.m.i. or other monthly expense you incur on the | | | | as well. Take the purchase agreement to a title |
| house. Positive cash flow is essential. You should | | | | company and inform the new mortgage company |
| expect to make at least $100.00 to $300.00 per | | | | where the closing will take place. |
| month in positive cash flow. | | | | Also, remember that the income you receive |
| The damage deposit you will require will be high. | | | | from your renter pays for your mortgage liability |
| Typically a deposit is one month rent. In your | | | | and then some. Therefore, there should be no |
| case, because you are offering to sell the house | | | | problem being able to secure a new mortgage for |
| on an option, the damage deposit will also function | | | | you when you move into your new house |
| as the option deposit. The amount can be | | | | because the house generates income over and |
| anywhere from $2500.00 to $30,000.00 or | | | | above the liability. |