Investors, or more specifically investors looking to invest in building a portfolio of homes and real estate.
At Istockhomes we have been building a website that started out as a “For Sale by Owner” website yet as we’ve been building it and developing the concept of the site we have noticed similar niches and a lot of areas that seem to not be covered. Today I’m going to go over some thoughts on just one of them.
The topic is why you should be willing to look at helping renters that can not afford to purchase a house to do a “lease to own with no money down” instead.
What’s in it for you? Good question.
Here is the answer. Being a landlord is a lot of work and if you follow the rules of being a landlord you should live within a ten minute drive of any one of your rental properties. The reason you need to live close is because your renters will usually have difficulties that they want you to fix. You are their handyman. For free! Your responsibilities include: maintaining the structure, keeping the roof from leaking, making sure the plumbing is working, keeping the electrical up to date and on the list goes. This does not seem like much fun to me.
So a “lease to own with no money down” could be a better way to go. Here instead of having a rental agreement that does not do much for you the homeowner, a lease to own agreement can be drawn up. Just make sure it is legal to do this where you reside.
At Istockhomes we have gone ahead and done a few things that may make the whole process easier.
First we wrote a blog for people who are looking to become homeowners and are currently renters and don’t have enough money for a down payment. Here is a link to that blog.
In the blog we tell them as much as we can to get them in the right mindset and do our best to explain the differences between being a renter and being a person who is doing a lease option. or leasing a home with an option to purchase.
Please take some time to look through the blog that is written to them it includes a link to a mortgage calculator, a do it yourself home inspection report, and a sample agreement for a lease to own.
If you are here and reading this blog and have money to invest and want to invest it in real estate, we have made it really easy for you to get set up to put your money to work for you.
Ready, all you need to do is fill out a form where we ask you for your name, your email address, and then give you room to describe what you are looking for. For you it’s fairly easy to get started.
Once you have filled out the form you can just sit back and wait for someone to send you a request. They are going to have to find out how much they can afford and they should have read through the blog for lease to own.
Now before you prejudge renters and place all of them in the same group take note that things are changing. There is now way less focus on the typical life path that our parents had. Remember get grade twelve, get a good job for a big company, buy a house, raise your family, then sell your house and downsize to help pay for your retirement. Ya, that’s old! Or how about pay yourself first, put the first 10% of your income into a retirement fund. Very few people who are getting into the housing market have any savings. Instead they have debt.
This generation tends to spend 100% of what they make, they live life to the fullest, they holiday more, eat out more, and need to keep up appearances. They also change careers more often than they used to and are more willing to relocate if they see greener grass just over the border somewhere.
Well, believe it or not you can capitalize on this type of person. They will usually be well educated, and willing to spend, and willing to sign an agreement that they could walk away from without a penalty. They will probably not have a downpayment. This willingness to spend is a good thing, they should be willing to spend more on a lease to own than on rent.
For you, you get to keep 100% ownership of the property and they won’t even show up on the title until you allow them to. Them leasing to own will put them as responsible owners if you set up the terms correctly.
If they do walk away from the agreement, you have received rent and hopefully they have kept the place up and maybe even painted or upgraded for you. You have also had the freedom to travel or do as you wish because they will be responsible for the upkeep of the place.
If they do settle in and stay for the entire duration of the contract you have made a decent return on your investment. Either way you come out ahead.
So here is a link to the form for you to fill out http://istockhomes.com/node/add/investor- .There is no cost and you can take down your listing when ever you wish.
Lastly please make sure you take this agreement seriously and get a lawyer to draw up the actual legal documentation.
Disclaimer: This blog is provided for informational purposes only and should not be relied on as legal advice. The blog cannot and does not address the unique facts and circumstances of your specific situation and should not be relied on for your particular transaction. We make no claims, promises, or guarantees about the accuracy, completeness, or adequacy of any information contained in this blog. Therefore, you should not use the sample terms without first obtaining the advice of a competent real estate solicitor. By utilizing these materials, you: (i) assume full responsibility for any loss, damage, or liability resulting from the use of these sample terms; and (ii) release Istockhomes Marketing Ltd., its contributors, agents, licensees, successors and assigns from any and all known or unknown claims, demands or causes of action that may arise, at any time, out of or relating to your use of any of the sample terms of this blog.