Maria Gudelis on Rent To Own for a Recession Real Estate Economy
The rent to own idea is not a new one but makes sense in the recession real estate economythat we are in today. Because there are so many people going into foreclosure who do not want to leave their homes, you can be doing them a service and allowing them a year to get back on their feet. You can lower the amount of their monthly mortgage payment by refinancing the property at the rock bottom interest rates that are currently available. You have to make sure that this is a viable option for you as well as a potential to earn a profit.
If you are looking for a way to make money in the current real estate economy and think that there is no way that you can do anything with the real estate recession, consider starting a rent to own program. I’ll write more about this on my real estate marketing website, Maria Gudelis.You can do this in several different ways. You can either purchase property that is already vacant because it has been foreclosed upon or purchase property that is in the process of foreclosure. With both instances, you can then mortgage the property and get the tenants to pay you rent covering the mortgage and taxes.
Part of the rent that the tenant pays to you will be put in an escrow account as part of their down payment for when they eventually purchase the property. The purchase price has been agreed upon beforehand. It should naturally be more than the amount for which you purchased the property so that you can make a profit.
If the people who are going into foreclosure manage to bounce back and can then come up with the money for the home in the specified time, both parties win. You make a profit and they get their home back. If not, you have the home. You can always try the rent to own idea with another interested party. Hope you enjoyed this post! Maria Gudelis
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