1. Lease Option
A lease option on a property offers the leasee the opportunity to buy the property at the end of the lease term. Lease options essentially offer a try before you buy trial period. If you are interested in a building, you can lease the building for a relatively short amount of time. This will give you an opportunity to determine if the building is going to fit your investment needs. If the building suits your needs then you can execute your lease option and buy the property. Since a lease option offers additional value, normally the leasee must pay small fee for the option to buy the property.
2. Rent to Own
In certain scenarios you may find yourself interested in owning a rental home for a short period of time, and planning to sell the investment property after that time period. In such a scenario you should consider employing the rent to own approach. When you offer a house that is rent to own, you collect rent from the tenant for the specified time period and the tenant possesses an option to buy the house at a later date. The rent to own approach provides you with rental income for the life of the lease, and also affords you the ease of selling the house to the tenant, avoiding the hassle of putting the house on the market and finding a real estate agent to sell the house for you. Renting to own essentially offers the same functionality as a lease option to the tenant.
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The first new Sales method for the 21st Century! We are looking for Sales Mentee's in this area to teach Claude Diamond's unique system of "Guts Sales Training". Are you looking for a new carreer? Do you want to strengthen your sales abilities? Free Training Session when you become a Mentee! Contact me for your FREE E-book! A $100 value!
You will be Mentored and learn wealth creation 1 on 1 from Myself and Claud Diamond, the author of Lease Purchase Success© . The Guts Sales Method, The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few. Mentoring works because there is accountability !
Discover Lease Purchasing!!
We are looking for Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.
You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/
George Pragovich
931-378-7850: Home
206-202-0944: Fax
gkprenttoowm@gmail.com
http://gkprenttoown.blogspot.com/
Skype: georgefitnesstrainer
http://cancerrecoveryandfitnessspecialist.blogspot.com/
http://cancerrecoveryandfitnessspecialist.wufoo.com/forms/please-contact-me/
http://georgefitnesstrainer.wordpress.com/
http://freedomtheconstitutionandpatriotism.blogspot.com/
Sunday, May 3, 2009
Monday, March 9, 2009
ANOTHER WAY TO BUY: Lease options
This is a great article about Lease Purchasing, another name for Lease Option. I found the article in the Oregonian Newspaper web site and the article is written by John Kirkland of ReMax Realtors. He references some of the homes selling in his area. I don't know if these homes are still available and I didn't want to remove them from the article.
Sunday, February 15, 2009
By JOHN KIRKLAND
The Oregonian
Many people who, two years ago, would have had no problem qualifying for a 30-year mortgage are now finding themselves shut out of the market -- at least until they can improve their credit rating.
Would-be buyers are having a tougher time qualifying, and sellers are having a tougher time selling because of the shortage of buyers.
As a result, lease-option contracts are becoming more popular for both buyers and sellers, according to Realtor David Van Nus, a broker with RE/MAX Equity Group who specializes in lease options.
How lease options work
A lease option is a legal agreement in which a seller leases his for-sale property to another party, giving that party the option of buying it within a certain time period. The option typically stays open for two years, although you can find option periods anywhere from one to three years. In most cases, part of the monthly payment goes toward a down payment on the property. So while the buyer is renting, he is also, in effect, saving toward home ownership.
A lease option can be attractive to sellers because it gives them a monthly income to make the mortgage payment until the property sells. It can also appeal to buyers who get to live in a house they'd like to buy while allowing them time to become more financially able to do so.
Lease options can also be attractive to investors. Some lease options have a sublet clause, which allows the person leasing the property to sublet it. For example, one could lease a property for $1,500 per month, sublet it for $2,000, and pocket the difference.
Lease-option properties are cropping up all over the Portland metro area, taking in the full spectrum of real estate: new, old, big, small, single family detached and condominiums.
Economy fuels popularity
Van Nus began specializing in lease options in 2006. He said the number of lease-option properties in the Portland area jumped from about 100 a year ago to 650 today because of the sluggish economy.
"Lease options have been around forever, but they're rampant now because mortgage companies are not offering financing for certain kinds of buyers," he said.
One of the 133 listings on Van Nus' Web site (see Resources, page HX) is a three-year-old studio in the John Ross building at 3601 S.W. River Parkway on the South Waterfront. Listed at $247,900, the contemporary condo is 638 square feet with one full bathroom, oak floors, stainless steel appliances, Corian countertops and brushed chrome door levers. It's located on the fifth floor, with a wall of windows overlooking the Willamette River and other South Waterfront condo towers.
The unit sits on the same floor as the building's outdoor terrace, which is landscaped and furnished with tables and seating.
Van Nus said the condo has been on the market for nearly one year. During that time, the owner has reduced the price by $12,000 and rented it out as an executive suite. "It would make a great investment property for this purpose," he said.
Buyer gets in house quicker
At the other end of the size range is a 4,380-square-foot Forest Heights home listed with Peggy Hoag, principal broker with Prudential NW Properties. The house at 9312 N.W. Murdock St. was built and owned by a local builder who had it on the market for close to a year before deciding to do a lease option.
"Making it a lease option allows the buyer to get into a house quicker and easier than seeking financing and buying it outright. It's especially good for people moving in from out of state who might be having trouble selling their home," she said.
The house, listed at $849,500, is full of decorative features, including barley-twist woodwork around two of its four fireplaces, wainscoting, chair rails, crown moldings, and Brazilian cherry floors with walnut inlays.
It has four bedrooms, 3.5 bathrooms, two full-length decks -- one off the main level and another off the master suite -- and a lower-level theater, rec room and bar. The bar is made of cherry with black granite tile, and has a small refrigerator, dishwasher and built-in wine rack.
Hoag has another lease-option listing across town at 4945 S.E. Rex Drive. Built in 2008, the three-bedroom, 2.5-bath house is perched on the side of a steep hill with commanding views from several rooms of the house -- particularly the master suite, which has its own deck. The home is listed at $349,900.
The house has 2,337 square feet, hardwood floors, and ample windows. A second slider door and deck are located off an upper-floor landing. Two upper-floor bedrooms are separated by a shared full bath. The master bath features a free-standing Asian-style cherry vanity with twin vessel sinks.
Hoag said buyers in lease-option contracts typically pay 5 percent of the home's list price as a down payment. Their monthly lease payments are based on the mortgage principal, interest, taxes and insurance that the seller must continue to pay until the home actually sells. Anything the buyer pays above that amount is usually applied toward the purchase of the home, she said.
So the monthly cost of a lease option is pretty close to what it would be if the buyer purchased the house outright. In the case of Hoag's Murdock home, the monthly outlay would be $4,400. For the house on Southeast Rex, it would be about $2,500, she said.
"Good Plan B"
For sellers in this market, Hoag calls lease options "a good Plan B," and something potential buyers can't afford to ignore.
"The sellers are highly motivated," she said. "They want to get out from their overhead."
Portland writer John Kirkland can be reached at kirklandjohnr@msn.com.
©2009 Oregonian
Discover Lease Purchasing!!
We are looking for 3 Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.
You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/
Cancer Recovery and Fitness Specialist!
32 years Fitness Training experience!
It doesn't matter where you live, I can help you achieve your goals.
Call for free consultation!
Receive a free training or consultative session for every individual you send to me that becomes my client!
George Pragovich
Cancer Recovery and Fitness Specialist
Trainer of Personal Trainers
931-378-7850: Home
206-202-0944: Fax
gkp@charter.net
http://gkprenttoown.blogspot.com/
Skype: georgefitnesstrainer
http://cancerrecoveryandfitnessspecialist.blogspot.com/
http://cancerrecoveryandfitnessspecialist.wufoo.com/forms/please-contact-me/
http://georgefitnesstrainer.wordpress.com/
http://freedomtheconstitutionandpatriotism.blogspot.com/
Sunday, February 15, 2009
By JOHN KIRKLAND
The Oregonian
Many people who, two years ago, would have had no problem qualifying for a 30-year mortgage are now finding themselves shut out of the market -- at least until they can improve their credit rating.
Would-be buyers are having a tougher time qualifying, and sellers are having a tougher time selling because of the shortage of buyers.
As a result, lease-option contracts are becoming more popular for both buyers and sellers, according to Realtor David Van Nus, a broker with RE/MAX Equity Group who specializes in lease options.
How lease options work
A lease option is a legal agreement in which a seller leases his for-sale property to another party, giving that party the option of buying it within a certain time period. The option typically stays open for two years, although you can find option periods anywhere from one to three years. In most cases, part of the monthly payment goes toward a down payment on the property. So while the buyer is renting, he is also, in effect, saving toward home ownership.
A lease option can be attractive to sellers because it gives them a monthly income to make the mortgage payment until the property sells. It can also appeal to buyers who get to live in a house they'd like to buy while allowing them time to become more financially able to do so.
Lease options can also be attractive to investors. Some lease options have a sublet clause, which allows the person leasing the property to sublet it. For example, one could lease a property for $1,500 per month, sublet it for $2,000, and pocket the difference.
Lease-option properties are cropping up all over the Portland metro area, taking in the full spectrum of real estate: new, old, big, small, single family detached and condominiums.
Economy fuels popularity
Van Nus began specializing in lease options in 2006. He said the number of lease-option properties in the Portland area jumped from about 100 a year ago to 650 today because of the sluggish economy.
"Lease options have been around forever, but they're rampant now because mortgage companies are not offering financing for certain kinds of buyers," he said.
One of the 133 listings on Van Nus' Web site (see Resources, page HX) is a three-year-old studio in the John Ross building at 3601 S.W. River Parkway on the South Waterfront. Listed at $247,900, the contemporary condo is 638 square feet with one full bathroom, oak floors, stainless steel appliances, Corian countertops and brushed chrome door levers. It's located on the fifth floor, with a wall of windows overlooking the Willamette River and other South Waterfront condo towers.
The unit sits on the same floor as the building's outdoor terrace, which is landscaped and furnished with tables and seating.
Van Nus said the condo has been on the market for nearly one year. During that time, the owner has reduced the price by $12,000 and rented it out as an executive suite. "It would make a great investment property for this purpose," he said.
Buyer gets in house quicker
At the other end of the size range is a 4,380-square-foot Forest Heights home listed with Peggy Hoag, principal broker with Prudential NW Properties. The house at 9312 N.W. Murdock St. was built and owned by a local builder who had it on the market for close to a year before deciding to do a lease option.
"Making it a lease option allows the buyer to get into a house quicker and easier than seeking financing and buying it outright. It's especially good for people moving in from out of state who might be having trouble selling their home," she said.
The house, listed at $849,500, is full of decorative features, including barley-twist woodwork around two of its four fireplaces, wainscoting, chair rails, crown moldings, and Brazilian cherry floors with walnut inlays.
It has four bedrooms, 3.5 bathrooms, two full-length decks -- one off the main level and another off the master suite -- and a lower-level theater, rec room and bar. The bar is made of cherry with black granite tile, and has a small refrigerator, dishwasher and built-in wine rack.
Hoag has another lease-option listing across town at 4945 S.E. Rex Drive. Built in 2008, the three-bedroom, 2.5-bath house is perched on the side of a steep hill with commanding views from several rooms of the house -- particularly the master suite, which has its own deck. The home is listed at $349,900.
The house has 2,337 square feet, hardwood floors, and ample windows. A second slider door and deck are located off an upper-floor landing. Two upper-floor bedrooms are separated by a shared full bath. The master bath features a free-standing Asian-style cherry vanity with twin vessel sinks.
Hoag said buyers in lease-option contracts typically pay 5 percent of the home's list price as a down payment. Their monthly lease payments are based on the mortgage principal, interest, taxes and insurance that the seller must continue to pay until the home actually sells. Anything the buyer pays above that amount is usually applied toward the purchase of the home, she said.
So the monthly cost of a lease option is pretty close to what it would be if the buyer purchased the house outright. In the case of Hoag's Murdock home, the monthly outlay would be $4,400. For the house on Southeast Rex, it would be about $2,500, she said.
"Good Plan B"
For sellers in this market, Hoag calls lease options "a good Plan B," and something potential buyers can't afford to ignore.
"The sellers are highly motivated," she said. "They want to get out from their overhead."
Portland writer John Kirkland can be reached at kirklandjohnr@msn.com.
©2009 Oregonian
Discover Lease Purchasing!!
We are looking for 3 Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.
You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/
Cancer Recovery and Fitness Specialist!
32 years Fitness Training experience!
It doesn't matter where you live, I can help you achieve your goals.
Call for free consultation!
Receive a free training or consultative session for every individual you send to me that becomes my client!
George Pragovich
Cancer Recovery and Fitness Specialist
Trainer of Personal Trainers
931-378-7850: Home
206-202-0944: Fax
gkp@charter.net
http://gkprenttoown.blogspot.com/
Skype: georgefitnesstrainer
http://cancerrecoveryandfitnessspecialist.blogspot.com/
http://cancerrecoveryandfitnessspecialist.wufoo.com/forms/please-contact-me/
http://georgefitnesstrainer.wordpress.com/
http://freedomtheconstitutionandpatriotism.blogspot.com/
Friday, February 27, 2009
Rent to Own Property Equals Easy Homeownership
I found this article at another blog named ifeelwild.com. It explains renting to own very clearly. Even though this is from a competitor, it deserves to be placed in my blog since it has been written this well. Nice job!
Discover Guts Sales Training!!
The first new Sales method for the 21st Century! We are looking for Sales Mentee's in this area to teach Claude Diamond's unique system of "Guts Sales Training". Are you looking for a new carreer? Do you want to strengthen your sales abilities? Free Training Session when you become a Mentee! Contact me for your FREE E-book! A $100 value!
You will be Mentored and learn wealth creation 1 on 1 from Myself and Claud Diamond, the author of Lease Purchase Success© . The Guts Sales Method, The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few. Mentoring works because there is accountability !
Discover Lease Purchasing!!
We are looking for 3 Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.
You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/
If you ask most families if they would prefer to rent or own their home will know what most would choose. Why is it then that thousands of families around the world face the same issue day in day out, being trapped in the rental cycle? This article is going to discuss the benefits of renting to own your own home and the basics of how it works.
Renting to own your own home is really not that different to renting to own a fridge or television set. You get the enjoyment and the use of the asset with the option to buy that asset at the end of the agreed term. The only key difference between rent to own with property and rent to own with household appliances is the price tag and the term of the rent to own contract. The benefits to both the buyer and the seller are enormous. The downsides are minimal.
Having lousy credit as a new home buyer can really make it difficult when you are getting started and you generally face rejection with banks and other lending institution. It’s a sad fact that if you don’t fit into the lending criteria of these mortgage lenders that you will generally be rejected for financing by these institutions, simply because your credit is not what they class as safe.
So what can you do if the mortgage lenders will not support you to buy a home? Find someone who already has finance in place, and needs to sell a property that they no longer want or need. This is by far the most overlooked market around the world. There are thousands of properties around the world every year that are simply not selling. It may be that the sellers want the top price and won’t budge on their price. It could be that they have very little equity available. Whatever the reason is, you can become a dream come true to these owners.
One of the biggest problems that sellers have when they get stuck with a house that they don’t need or want, is that they have ongoing monthly payments they must be maintained, or their bank will foreclose. No property owner wants this to happen, and when they are stuck between sitting on a home that has debt to be maintained, and needing to move, it can become very distressing for them. The rent to own solution fixes these problems for the vendor, because the new home buyer has the income to support the monthly payments and is happy to purchase over a period of time. This helps improve the purchasers credit score over time, and helps the seller to move on without any worries about how the monthly payments will be met. Rent to own homes generally have a lease agreement between the seller and the tenant/buyer and they have another legal document called a Call Option. The Call Option gives the new buyer the right, but not the obligation to purchase the home after an agreed period of time. During this time, the new buyer pay’s an agree amount of money to the owner of the home, so that the monthly outgoings can be maintained. The new buyer normally makes cosmetic changes to the home and maintains the home so that they can build up value over the term of the contract.
At the end of the Call Option period, the tenant/buyer can choose to either purchase the property or simply walk away if they change their mind. If the tenant/buyers move forward and purchase the home, they have achieved what they would not have been able to do while having poor credit and the owner has the stress of paying for an unwanted home removed. Of course, if the new buyers choose to walk away at the end, the existing vendor can either resell the house which has probably gone up in value, or they could even set up another rent to own home deal. The choice are endless and work really well for both the vendor and new buyer.
George Pragovich
Cancer Recovery and Fitness Specialist
Trainer of Personal Trainers
931-378-7850: Home
206-202-0944: Fax
gkp@charter.net
http://gkprenttoown.blogspot.com/
Skype: georgefitnesstrainer
http://cancerrecoveryandfitnessspecialist.blogspot.com/
http://cancerrecoveryandfitnessspecialist.wufoo.com/forms/please-contact-me/
http://georgefitnesstrainer.wordpress.com/
http://freedomtheconstitutionandpatriotism.blogspot.com/
Discover Guts Sales Training!!
The first new Sales method for the 21st Century! We are looking for Sales Mentee's in this area to teach Claude Diamond's unique system of "Guts Sales Training". Are you looking for a new carreer? Do you want to strengthen your sales abilities? Free Training Session when you become a Mentee! Contact me for your FREE E-book! A $100 value!
You will be Mentored and learn wealth creation 1 on 1 from Myself and Claud Diamond, the author of Lease Purchase Success© . The Guts Sales Method, The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few. Mentoring works because there is accountability !
Discover Lease Purchasing!!
We are looking for 3 Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.
You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/
If you ask most families if they would prefer to rent or own their home will know what most would choose. Why is it then that thousands of families around the world face the same issue day in day out, being trapped in the rental cycle? This article is going to discuss the benefits of renting to own your own home and the basics of how it works.
Renting to own your own home is really not that different to renting to own a fridge or television set. You get the enjoyment and the use of the asset with the option to buy that asset at the end of the agreed term. The only key difference between rent to own with property and rent to own with household appliances is the price tag and the term of the rent to own contract. The benefits to both the buyer and the seller are enormous. The downsides are minimal.
Having lousy credit as a new home buyer can really make it difficult when you are getting started and you generally face rejection with banks and other lending institution. It’s a sad fact that if you don’t fit into the lending criteria of these mortgage lenders that you will generally be rejected for financing by these institutions, simply because your credit is not what they class as safe.
So what can you do if the mortgage lenders will not support you to buy a home? Find someone who already has finance in place, and needs to sell a property that they no longer want or need. This is by far the most overlooked market around the world. There are thousands of properties around the world every year that are simply not selling. It may be that the sellers want the top price and won’t budge on their price. It could be that they have very little equity available. Whatever the reason is, you can become a dream come true to these owners.
One of the biggest problems that sellers have when they get stuck with a house that they don’t need or want, is that they have ongoing monthly payments they must be maintained, or their bank will foreclose. No property owner wants this to happen, and when they are stuck between sitting on a home that has debt to be maintained, and needing to move, it can become very distressing for them. The rent to own solution fixes these problems for the vendor, because the new home buyer has the income to support the monthly payments and is happy to purchase over a period of time. This helps improve the purchasers credit score over time, and helps the seller to move on without any worries about how the monthly payments will be met. Rent to own homes generally have a lease agreement between the seller and the tenant/buyer and they have another legal document called a Call Option. The Call Option gives the new buyer the right, but not the obligation to purchase the home after an agreed period of time. During this time, the new buyer pay’s an agree amount of money to the owner of the home, so that the monthly outgoings can be maintained. The new buyer normally makes cosmetic changes to the home and maintains the home so that they can build up value over the term of the contract.
At the end of the Call Option period, the tenant/buyer can choose to either purchase the property or simply walk away if they change their mind. If the tenant/buyers move forward and purchase the home, they have achieved what they would not have been able to do while having poor credit and the owner has the stress of paying for an unwanted home removed. Of course, if the new buyers choose to walk away at the end, the existing vendor can either resell the house which has probably gone up in value, or they could even set up another rent to own home deal. The choice are endless and work really well for both the vendor and new buyer.
George Pragovich
Cancer Recovery and Fitness Specialist
Trainer of Personal Trainers
931-378-7850: Home
206-202-0944: Fax
gkp@charter.net
http://gkprenttoown.blogspot.com/
Skype: georgefitnesstrainer
http://cancerrecoveryandfitnessspecialist.blogspot.com/
http://cancerrecoveryandfitnessspecialist.wufoo.com/forms/please-contact-me/
http://georgefitnesstrainer.wordpress.com/
http://freedomtheconstitutionandpatriotism.blogspot.com/
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