|
Home | Medical-Newswire.Com:
|
(EMAILWIRE.COM, May 10, 2007 ) Livonia, MI -- Mark Maupin, real estate agent for Budget Realty said “I have used this exit many times, and gotten myself out of overwhelm while selling my home on the spot. Your prospective tenants might not necessarily know the meaning of Lease with Option to Buy, but they do know the term, Rent to Own! I have many times ran adds for rent to own, and found people to who can buy my home now! Our company has a set program for a low flat listing fees combined with education and coaching on how to find qualified buyers NOW for your home. What I love is that our broker is giving the same training seminar on DVD to Home sellers; Investors pay $850.00 for the same course. Our broker pays for title commitment on the home, provides the DVD training, Coaches you on how to generate buyers, and lists the home all for $850.00. Said another way, the homeowner gets the training, the forms, the title commitment and coaching and in addition the Real Estate broker lists the home for FREE! Show me anyone doing that in Michigan I will give you a free pound of coffee. My broker Ken Nickell says everyone in the State of Michigan has got to pull their belt in and kick in their part to turn our State around!” The person to call for this program is Ken Nickell Phone: 734-402-0180 ext 111 Email Mail: knickell@budgetrealtyllc.com . Address: Budget Realty, 17199 North Laurel Park Dr., Suite 424 , Livonia, Michigan 48152RENT TO OWN Increases profits through the use of Lease Options and brings you a qualified buyer now!Homeowners, there is a tool that you will absolutely want to include in your "toolbox" of home selling strategies-LEASE WITH OPTION TO BUY. This article will give you a basic overview of Options and how they can be used to increase your profits and produce quicker cash flow for homes on the market. First, let's clear up some "slang" terms often used with these that create confusion: Rent to Own, Lease Option, Lease with Option to Purchase all mean the same thing in general usage. Rent and lease mean the same thing; a lease is simply a rental agreement that is for a set period of time (e.g. twelve months required rental period) whereas people often refer to month-to-month situations as rentals. BENEFITS of doing Lease Options- Let's look as some things that you can expect when you offer your property on a Lease with Option to Buy: More interested tenants more qualified tenant’s higher monthly income from your property or immediate sellhigher sales prices Reduced maintenance expenses 1. If you place an ad for your property offering a lease with Option to buy, you can generally expect five times the number of responses than a regular "For Rent" ad. There are a lot of people looking for an opportunity to own their own home rather than just continue to rent. 2. The tenants that you get calls from will be people who are inherently more responsible and serious about owning their next home, since they are interested in owning a property. 3. Traditionally, with a lease option on a home, you will receive a monthly payment towards the option fee (the fee you are being paid to grant the option) in addition to the monthly rent, thereby increasing your monthly cash flow. 4. Since you are working with people who often aren't immediately able to purchase a home outright for various reasons, (usually credit or time on the job) you are providing them the opportunity to own when they couldn't otherwise. People looking to buy with a lease option are generally willing to pay a slightly higher sales price, often 15% higher. What is an OPTION? An option is a grant of the right to purchase property, at set price and terms, from the owner of the property. The person who receives the option can (but is not required to) purchase the property during a set period of time agreed to by both parties, when they enter the option. An option is different from an agreement to sell (Purchase Agreement) in that with a Purchase Agreement, the buyer agrees to buy and the seller agrees to sell. Under an option, the seller agrees to sell, but the buyer does not agree to buy, they simply have the option of buying during the option period. Note: In an Option, the Seller is the Optionor (The one who gives the Option) and the Buyer is known as the Optionee (The one who receives the Option. What is needed to SET UP a Lease with Option to Buy? To set up a Lease with Option to Purchase with a tenant, you will need all of the documents you would normally use to set up a simple rental/lease. (Rental Agreement, check-in/check-out list, Lead Base Paint Disclosure and pamphlet, Smoke Detector Agreement and any other agreements you would normally use). In addition, you will need an Option agreement, and you want to be sure that you're using one that protects you as the Optionor, as many option forms available favor the Optionee. Attached to the Option will be a Purchase Agreement, which will spell out the terms of the sale that the tenant may purchase under, in the future. NOTE: It is important that both parties just initial the Purchase Agreement on the top or bottom corner to acknowledge that the terms have been agreed to but it is not yet a binding Purchase Agreement. Also, you will want to be sure to use an Option form that is not recordable, on the public records so that the tenant doesn't unnecessarily cloud the title to your property. How to STRUCTURE a Lease Option- Through our experience, over the years, we have found the following to be a good guideline for structuring Lease Options: 1. Charge market rent. Don't give discounts on rent just because the tenants are also paying you a monthly option fee or they are planning on buying the house; the option is separate from the rental. 2. Get as much option fee as you can up front, the more the perspective tenants pay up front, the greater their risk will be if they don't follow through. Credit the option fee towards the sale price if they close. We have program we are using in Michigan where we put the tenant a risk option note payment.3. In Michigan, you can only collect equal to 1-1/2times the amount of the rental rent as security deposit up front when renting, plus you may have to give it back if the tenants move. When doing an option, don't charge a security deposit; apply the funds the tenant would have paid to the option fee, which is non refundable. 4. Make your option cancelable by you if the tenants default in any of the terms of the rental/lease. (We have this incorporated into all of our agreements) 5. Work with a mortgage loan officer to qualify your perspective tenants. Have the loan officer advise you on how long it will take to have the tenant "mortgage ready", then set your lease option term accordingly. 6. When pricing your property, you will be able to get more than market price, but remember the property will have to appraise for the purchase price when they qualify for the mortgage. 15% or higher is a good range, figuring their option fee being deducted and appreciation. An excellent explanation of "why pay more" is the example of car insurance, you get some accidents and tickets, and then you end up paying more. Just the same, your credit scores affect the cost of financing and the availability of sellers who will work with you. 7. Make the tenant responsible for repairs and maintenance to the property; make sure your rental agreement states they are responsible for the cost of such repairs and renovations. (Keep in mind under Michigan law, you are still ultimately responsible to perform repairs when you rent property, but often tenants will perform or arrange needed repairs and even if they don't, you can charge the tenants for the repairs.) No matter what your investment plan or strategy, options can be used to produce better profits and less "management intense" rental situations, as well as one of the best solutions to sell your rental property at top dollar. It can truly work as one of the best "win/win" situations in real estate investment. Disclaimer: Real estate investing by nature is risky. You can win, lose or break even. We cannot guarantee a profit or loss. We do not provide legal, accounting or contracting advice. Rent to buy is often referred to as: lease purchase option, lease option home, real estate lease option, lease option contract, lease option form, lease option to buy house, lease option buy form, lease with option to buy contract, lease option to buy real estate, lease purchase option for home, lease option house, lease option agreement, residential lease option to purchase, lease with option to purchase form, rent to own, rent to own home, rent to own house, rent to own Michigan, rent to and own home listing. If you need to look up the meaning of any of words or terms in this press release, wikipedia is great source http://en.wikipedia.org terms like: unilateral contract, optionee, optionor, term, lease option lease option to buy, rent agreement, lease, real estate, rent to own real estate, and lease option to buy home.Contract Person: Ken Nickell Phone: 734-402-0180 ext 111 Email Mail: knickell@budgetrealtyllc.com . Address: 17199 North Laurel Park Dr. Suite 424 Livonia, Michigan 48152 There is additional information on Budgets web site http://detroitinvestmenthomes.com. In Michigan the Budget Realty Flat Fee Listing often referred to as #1Michigan MLS Flat Fee Listing, multiple listing service, real estate flat rate real estate MLS listing service, Flat Fee Listing, low listing cost, saving you thousands of dollars, new low-cost to list your house, property in the MLS Real Estate Multiple Listing Service, and Multiple Listing Service flat fee listings MLS. If you need to look up the meaning of any of words or terms in this press release, wikipedia is great source http://en.wikipedia.org terms like: town homes, condo or land, flat list, flat listing fee, flat fee, flat fee listing, flat rate, mls, for sale by owner, fisbo, discount realtor, real estate, flat fee MLS, Michigan listing service, listing, selling, fee realty, selling fisbo, flat fee multiple listing service, mls listing, flat charge, multiple listing service, MLS, no listing commission, discounted commission. The Web site to find discount broker, discount agent, discount realty, discount real estate, discount agent, Detroit metro real estate, MLS for owners, fsbo advertising service by owner, fizbo, house, properties and land is http://DetroitInvestmentHomes.com.###This press release was issued through GroupWeb EmailWire.Com. For more information on press release distribution, go to http://www.emailwire.com.
Budget Realty LLC
National Real Estate Network
mmaupin@donaterealestate.com 
Source: EmailWire.com
|
|
|
|
