Buying a Rental Home
If you wish to purchase a home in today's economy you will be interested to know that many of our rentals can be purchased. In today's market the Banks are reluctant to lend money. If you are lucky enough to get a bank loan we will assist you in picking out a home that suits you. If borrowing from a bank is not an option, many landlords are willing to finance the sale of their rental homes.
ADVANTAGES TO PURCHASING A RENTAL:
A. You may rent the home and live in it to detemine if the neighborhood is acceptable and to determine if there are any issues with its' structure or its' systems.
This will also allow the owner a period of time to see that you make your payments on time and it may influence how much down payment he requires.
B. Your entire Security Deposit will be returned at closing so that you may use the funds for closing costs or insurance.
C. Mortgage Payments are paid in arrears. Instead of paying the payment in advance as you do with rent, you pay after you have lived in the home. That allows you
to take your rent for the first month that you purchase and use it for other expenses.
First, you will need to let us know that you are interested in purchasing a home. We will then contact the owner and determine if he is willing to sell and at what price. If the owner wishes to sell and provides a sales price, we will contact you with his terms. If you wish to proceed then you will need to consider a few other factors.
In dealing with owner financing, most sellers will want a down payment from $3000 to $5000 dollars to protect themselves against loss of funds if the loan goes bad. This will be deposited at the time you sign your offer to the owner and returned to you at closing to be used in the transaction, if the offer is accepted. These funds are called a "Binder" or "Earnest Money." The offer will then be presented to the seller for his acceptance .
NOTE: Most sales are in "as-is" condition, meaning the landlord does not wish to invest in cosmetic repairs in order to make the sale. Real Estate, however, is a business of negotiation. You may certianly ask for improvements and in some cases the landlord may agree, especially if it adds value to his investment property. In most cases, however, additional work will result in an increase in sales price.
ADVANTAGES TO PURCHASING A RENTAL:
A. You may rent the home and live in it to detemine if the neighborhood is acceptable and to determine if there are any issues with its' structure or its' systems.
This will also allow the owner a period of time to see that you make your payments on time and it may influence how much down payment he requires.
B. Your entire Security Deposit will be returned at closing so that you may use the funds for closing costs or insurance.
C. Mortgage Payments are paid in arrears. Instead of paying the payment in advance as you do with rent, you pay after you have lived in the home. That allows you
to take your rent for the first month that you purchase and use it for other expenses.
First, you will need to let us know that you are interested in purchasing a home. We will then contact the owner and determine if he is willing to sell and at what price. If the owner wishes to sell and provides a sales price, we will contact you with his terms. If you wish to proceed then you will need to consider a few other factors.
In dealing with owner financing, most sellers will want a down payment from $3000 to $5000 dollars to protect themselves against loss of funds if the loan goes bad. This will be deposited at the time you sign your offer to the owner and returned to you at closing to be used in the transaction, if the offer is accepted. These funds are called a "Binder" or "Earnest Money." The offer will then be presented to the seller for his acceptance .
NOTE: Most sales are in "as-is" condition, meaning the landlord does not wish to invest in cosmetic repairs in order to make the sale. Real Estate, however, is a business of negotiation. You may certianly ask for improvements and in some cases the landlord may agree, especially if it adds value to his investment property. In most cases, however, additional work will result in an increase in sales price.
