Posts Tagged ‘sake’

The benefits of rent to own homes are immense. Buying properties by the rent to own method helps in acquiring the ownership of the concerned homes, without dealing with the banks and mortgage companies.

The idea of the rent to own properties is growing very briskly in the real estate market. Some people choose this option just for the sake of checking out the neighborhood, prior to giving full commitment of purchasing the property. The overall outlook of the rent to own homes, make them a perfect solution for the investors.

Most of the people have found their ideal homes by the process of rent to own. Renting to own is fast becoming the preferred choice of the first time investors in the real estate market. This method is similar to the method used for the rent to own vehicles, wherein the vehicle is first leased, and during the lease if the person likes it, the decision of purchasing it is taken.

The fact that the down payments required in the real estate market are increasing with the time, will not be negated by anyone. In such a scenario, buying the rent to own homes is a much better choice, as the down payments required to be made in this method are very low.

Another important benefit of rent to own homes is that the individuals do not have to worry about the closing costs of the property. The agreement regarding the appropriate price of the house is done between the buyer and the landlord.

In some cases, the payments made towards the rent are accumulated by the landlord as payments towards the price of purchasing the property. In such cases, the landlord asks for a payment that is higher than a month’s rent. This is done for substitution of a large down payment. But, these rates are negotiable.

Another benefit of rent to own homes is, the renters can decide during the course of the lease about not buying the property in the future. This is permitted without any kind of repercussions.

The price of the concerned property remains the same throughout the period of the lease. The landlord is not permitted to increase the price during the course of the lease.

Rent to own investors have to keep in mind the ailments of buying property through the rent to own option. There are potential considerations in buying rent to own homes. This is because, the tenant buyer deals with an investor and not with any financial institution or bank, for this purpose.

The unscrupulous investor, who have a better understanding of the fundamentals of the real estate market, can cheat the new tenant buyers into signing a bad deal. Hence, it is always recommended that the buyers do a thorough review of the property before investing in it. The inspection of the property will result in a proper deal that will prove fruitful in the future for the tenant buyer.

Charles W. Moore, a U.S. Army Veteran began Real Estate Investing in 2001. He’s a Successful Investor, and Author of, “Million Dollar Rent To Own Real Estate Secrets Exposed.” Get his Free Report on Rent To Own Real Estate Investing [http://www.Rent2OwnExposed.com] at: [http://www.Rent2OwnExposed.com] – Learn Real Estate Investing, Stocks Markets and Internet Marketing, visit: http://www.REIeBooks.com

Author: Charles W. Moore
Article Source: EzineArticles.com
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Buying a property overseas can be exciting and can also make you money. There is a vast amount of destinations to choose from.

Here we will outline 8 basic tips for buying overseas property that will help you find the property of your dreams.

1. Why are you buying?

Be clear of your major objective before buying your overseas property.

You need to decide exactly what you want the property to do for you.

Is it purely for a capital gain to a profit? Or is it for your use mainly as a vacation home?

2. Don’t rush

Don’t hurry or act on impulse.

If you miss one property there will always be another one later. Make sure you stay cool calm and collected and don’t rush into anything.

3. Get professional help

A good realtor and lawyer may cost you extra, but they can save you money in the long term and its money well spent.

They know the local market and the know the local laws and these are areas you will need guidance in.

The laws in many countries are very different from what you’re used to and you need to check all the facts and make sure you’re clear on what your rights are.

4. Do Your own Research

While you should have a good realtor and lawyer to help you, the final say in buying the overseas property of your dreams is with you.

So take advice but don’t take it blindly, make your own mind up and take your time to ensure the property is right for your needs – only you know them.

5. Select your location to suit your needs

Are you buying to get away from it all and immerse your self in the local culture or are you buying to be in a country and still have a large expert community around you?

The type of property you buy will reflect your personality and what you want to get from your investment.

6. Buying a property for investment

If you are buying a property and want it to appreciate in value, don’t go for cheap properties just for the sake of it.

This means avoiding countries where the market is yet to take off and buying one that has taken off and has room for further growth i.e. there is steady investment coming into the market.

New property hot spots come all the time and the sales patter sounds convincing but, most of these markets never take off and a loss.

If you want to make money with the lowest risk you should buy an established market that’s expanding and has good potential for more growth.

7. Buy a property in a place that is popular with locals

If you are buying overseas property as investment property it should be in an attractive area for investors of all different nationalities as well as locals.

This means when buying your overseas property you can sell quickly and at a good price, should you wish to do so.

These areas also tend to hold value well and appreciate over time.

Check out the shops, restaurants, and entertainment in an area. Most people who want to use a property as a holiday home will want to be near shops, restaurants, and other facilities.

Also check the transport how close you are to major airports etc

This is critical not only for re selling, but also if you want a rental income. Most people like easy communications especially in the rental market so check access carefully.

8. Check other developments!

Check other developments that are planned in the area around where you are buying your overseas property.

One day you may have a stunning beach view and the next year this could suddenly be a little different, with a huge apartment block in the way!

Think this doesn’t happen?

Well it happens to more people than you may think, so don’t take the risk check the planning in building that could go on near your property purchase and play safe.

When buying an overseas property, take your time and use the tips above and you are well on the way to buying the overseas property of your dreams – good luck!

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For more info on all aspects of investing in overseas real estate visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

Author: Sacha Tarkovsky
Article Source: EzineArticles.com
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A sandwich lease may seem a bit complicated at first. It also doesn’t necessarily work well in all areas. However, when it does work, it is a great way to invest in real estate without much cash.

This technique has been used for a long time, but is still relatively unknown among investors. Essentially, you lease a property with an option to buy it, and then turn around and rent it out to someone else, also granting them an option to buy it. Their rent is higher than yours, of course, and their purchase price is as well.

A Sandwich Lease Example

You find a seller that has had some trouble selling his home. He has already moved, and has no immediate need to sell. He wants $132,000 for his house. You offer to lease the home for two years if he will also grant you an option to purchase it for $132,000 at any time within those two years. He likes the fact that you are offering full price.

You are honest and open with him about your intentions. You explain that you intend to improve a few things and sell the home for a profit. You will want the right to sublet the home as well. Here are the terms you finally agree to:

- The purchase price will be $132,000 – if you buy.

- You pay an option fee of $2,000. It is non-refundable if you don’t buy the home, but applied to the purchase price if you do.

- You will pay rent of $1200 per month (the going rate).

- $200 of each rent payment will be applied towards the purchase price if you buy the home.

- You will be responsible for the first $100 of any necessary repairs each month. This means the seller won’t have some of the usual headaches of being a landlord.

For the sake of this example, we will assume you are doing this in an area where real estate prices are rising quickly. This is where the technique will work best. If you have a list of potential buyers you are already in contact with, it works even better. Ideally, you want to have the place leased the day that you close on your lease, so you have no holding costs.

Your buyer is looking to lease a place because he may be transferred by his company. He would like to buy if he isn’t transferred. You have the right place for him. Here are the terms you negotiate:

- The purchase price will be $142,000 – if he buys. You explain that at the current rate of appreciation, the home will be worth $150,000 in two years, which is when he will likely be buying it. Of course, he doesn’t have to buy it. An option is just the right, but not an obligation.

- He pays you an option fee of $4,000. It is non-refundable if he doesn’t buy the home, but applied to the purchase price if he does.

- He will pay rent of $1500 per month.

- $300 of each rent payment applies towards the purchase price.

- He will be responsible for the first $100 of necessary repairs each month. This means any costs beyond that are passed on to the seller as per your contract.

The lease period must be the same or a little shorter than yours, of course. Now let’s look at the possible outcomes.

First of all, these kinds of leases are not that uncommon in some area of Florida, Arizona and California. Investors experiences in these places has been that the lessee often doesn’t buy the property. What happens then?

You have no obligation to buy either. So if your renter doesn’t exercise his option, you can let yours lapse as well. But where are you financially? You were paying $1200 per month, and collecting $1500, so after two years you have collected $7,200 profit. You also lost your $2,000 option fee, but kept the $4,000 fee you collected, adding another $2,000 to your profit. The owner is paying the insurance and taxes, and the renter the utilities, so you had no substantial costs.

Your total profit was close to $9,000 if the property was rented out at the same time that you signed your lease. You had a temporary cash outlay of $3,200 for the option fee and the first month’s rent. But your renter gave you $4,000 for the option fee plus $1,500 for his first months rent. If you had to get a cash advance on a credit card for a month, it would cost you just $40 or less in interest to make this a no money down deal.

What if your renter buys at the end of the two years? Your fee of $2,000 plus $2,400 in rent – $200 times 24 months – is applied towards the purchase, so you need $127,600 at closing ($132,000 minus the credits). Your buyer is credited $4,000 for his option fee plus a $7,200 rent credit – $300 times 24 months. This means he needs $130,800 at closing ($142,000 minus the credits). Closing costs will be around $2,000.

You make $3,200 at closing, plus you took in $2,000 more for a fee as you paid, plus you made $7,200 in rent beyond what you paid. That’s $12,400. After $2,000 or so in closing costs, you have a profit of more than $10,000.

I recently heard from an investor in Florida who did a deal just like this with a condo unit. In about 18 months he made a profit of more than $15,000. In other words, this can be done. Where it is less common, it may be harder to convince the owner to agree, as well as the subsequent renter.

Naturally the owner could just do what you intend to do with his property, so why does he agree to this deal? Because you are the one that will take the trouble to do it. You are the one who has the renter ready. The seller just wants his problem resolved quickly – and you are the one with the solution – a sandwich lease. It is just one of the many ways of making money in real estate.