Real Estate

Archive for August, 2010

The Secret To Making Money With Lease-to-own Properties

As a real estate investor you may be looking to purchase homes with the thought of renting them out as a means of generating consistent monthly passive income. However with all of the issues that are involved with becoming a landlord you may be thinking twice about this strategy of real estate investing. In this case the leasetoown option may be just exactly what you have been looking for.

When you offer a property to a tenant as a leasetoown option you are essentially renting to them. And as an added bonus for the tenant a portion of their rent can serve as a future downpayment to purchase the property. The biggest secret to making lease options work well for you as the investor is to write your contracts in a way which removes yourself from the daytoday issues of the property. By offering a good leasetoown contract to a potential tenant you can easily put the responsibility of upkeep and repairs onto your tenant and put yourself in the position of simply being the lender on the property.

In order to find a quality tenant is it important to screen each of your potential tenants on an individual basis and take a good look at their current and possible future financial situations. Generally people interested in lease options are either cashpoor and unable to afford a downpayment even through they have a good income or they have some other issue in obtaining a mortgage today that should resolve itself within a few years. Good examples of this type of tenant are those who have gone through a recent divorce or job change which has taken them across the country.

Standard lease option contracts are for a minimum of 3 years. However if your tenant decides after 3 years that they want to continue to lease from you but cannot purchase yet you can extend your contract and update the purchase price to reflect the current market value of the property.

By finding good quality tenants and giving them a good deal on your property with fair terms you can ensure that your property stays in good repair stays occupied for a long time and eventually it will either sell to the tenant or you can start again when they choose to move out.

About the writer:  Isnt it time you learned how to capitalize on one of the best markets for real estate investing that this country has ever seen? With the recent flood of foreclosures now is the time to learn to invest correctly in real estate from the hosts of the nations leading show on real estate investing Judson and Lynn Voss. Visit http://www.yourrealestatefortunes.com and learn for free the nohype truth about choosing the right real estate investing strategy to start making you money today.

The Reo Advantage

REO is real estate that is owned by the bank. The abbreviation stands for Real Estate Owned. In most cases the property will have initially foreclosed due to the owner’s inability to make payments and at this point the bank will purchase this property and attempt to sell it at a public auction. If there are no bids placed at this public auction the bank remains owners of the property and it will be sold as REO.

A bank is not set up to deal with real estate transactions and the more time they hang onto an unsold property the more it costs them in the long run. So as you can imagine a bank is usually quite anxious to get such properties off their hands and are willing to sell fast and cheap. This is an obviously advantageous situation for buyers looking for a smart real estate investment.

There are some distinct advantages to purchasing an REO over a foreclosure. With REO’s you are usually able to set your own purchase schedule because you will not have an auction date you have to work around. Also you will be entitled to a normal inspection whereas with a regular foreclosure you are not entitled to this normally standard subject. With an REO purchase you won’t have to worry about tenants and possible evictions as you sometimes have to deal with in the case of a foreclosure purchase.

Of course a bank being an institution that profits from investment will want to turn their asset into a usable financial investment. A house that is sitting there is not helping the bank and so it’s in their best interest to sell as quickly as possible. This leaves buyers with some extra negotiating ammunition. Usually in the case of REOs a buyer can bank on a purchase price that is quite a bit less than market value. As the bank will want to turn over a sale quickly all costs including interest and the size of the initial down payment are negotiable terms and can help you fetch the best price.

Of course there are certain instances where you should be wary of REO purchases. In most instances an REO purchase is a great investment and offers a 100 safe investment. But beware just because a bank owns such a property does not mean that it is a great deal. You have to ask certain pertinent questions: Were there any liens on the property? Was the property damaged and is that why it did not fetch a sale as a foreclosure? Again take full advantage of your rights to a certified home inspection and even an appraisal if you want to know more about the value of the property in question.

Another great way to be solid and sure on your REO purchase is to work closely with a real estate agent who specializes in REO sales.

About the writer:  Carolyn Capalbo is an expert military relocation specialist and real estate agent serving Northern Virginia real estate. Visit Just4Real.com to find updated market information about areas in Prince William including Arlington VA real estate.

The Pluses Of Investing In Asheville Real Estate

If you are seriously looking forward to make a sizeable investment in the real estate sector or thinking about getting into the real estate business as a full time job there is no better a place to kick start your property search than Asheville in North Carolina. Real estate investment is lucrative only if you invest in the right places at the right times. And Asheville at present has a booming real estate scene and a promising future ahead. Things cannot get any better than this for any intelligent real estate businessman.

The best places to invest in real estate are the greater Asheville and Hendersonville areas in NC. These areas have some of the scenic locales for settlement as well as a burgeoning influx of buyers from around the country for relocation and also for businesses. Also the real estate prices in Asheville and its neighborhood has shown consistency unlike many other places in the US where there is of late a downslide in the average property rates. For example the prices have been stead at/around mid 200000 in Asheville for few years now even though other parts of the state as well as in many other cities/states have witnessed a steep drop in the land prices. Further real estate is available in plenty in Asheville. Scarcity of land sometimes pushes the land prices up keeping the common man away. But Asheville is yet to reach that state but yet the returns are fairly consistent.

Other reasons why people prefer Asheville is owing to its good business prospects availability of schools and hospitals and also the mild climate in all the four seasons.

For those looking for a vacation home or vacation rental business or simply buying some priced land as a long term investment the Biltmore Lake shores and the charming Lake Lure surroundings has been a much sought after locale for long thanks to the steady inflow of local and international tourists to these lakes and nearby places. Further along the shores of Lake Toxaway and the natural rivers such as Davidson Rocky Broad French Broad and Swannanoa the earlier mentioned ones were man made potential real estate for investment are available in plenty. It is just about finding the right real estate piece and marketing it if for sale or turning it into a good investment.

For the prospective investor in order to invest in these places it would be a good idea to first seek the assistance of an experienced real estate agent working in the area and get the deal done through him/her. The advantage with having a good real estate agent is that he/she could help you to find a piece real estate suiting your needs and also for the budget you are willing to shell out. Since they understand the real estate scene of Asheville inside out having them with you while negotiating the deal will always come handy to push for the best deals/prices. Also since theyll take care of all the paper works pertaining to the real estate ownership transfer and other related formalities you the buyer does not have to worry much about these cumbersome aspects of a property deal.

About the writer:  The River Condos of Asheville are located on the French Broad River and represent the best in Asheville real estate. http://www.therivercondos.com . These Asheville condos use green building concepts and use recycled materials.