If you've dreamed of real estate riches and at the same time dreaming of being able to to help those who have hit a couple of snags along the way and yet are in general good people experiencing a difficult time then you may want to consider a sort of real estate investing in which you acquire properties after which work out a rent to own contract with individuals who, for one reason or another, cannot get the financing to buy their own properties at this time.
This kind of real estate investing is an effective way to make money in addition to assisting your fellow man and there are many other benefits to this kind of set up as well.
First of all, renters don't have any stake in a property. For this reason you will typically discover that renters have little consideration for destruction done to the property outside of the way it impacts their safety deposit. Those who have hopes of one of these days owning the property however are far more prone to take good care of the interior and exterior of the home they are renting. This means that chances are good that the value of the property will really get better throughout their tenure whether or not they finally choose to buy or not.
This too benefits you since these properties tend to be in great demand and will fill up more swiftly then the typical rental property should the sale of the home did not go through as planned for whatsoever reason. Common causes for sales not going through as planned are work associated transfers, divorces, and an inability to obtain financing even with the money escrowed to go towards facilititating a down payment. Fortunately even when the sale falls through you'll be able to make an effort again and your property isn't going to stay empty for a long period of time.
The advantages to these renting from you are many. First of all, you may be putting a predetermined and decided upon sum of each month's rent towards their down payment on the conclusion of the (again) formerly agreed upon period of time. This permits them to avoid wasting the funds for the down payment without really knowingly thinking about it every month. This contract in addition permits them just a little additional flexibility for making enhancements, painting to preference, and decorating when compared with your usual rental home.
Another huge advantage to these renting to own is that it offers them a specific period of time, usually two years, to have their business together and work on enhancing credit, saving money, and taking other constructive steps towards their dreams of home ownership. Additionally they get the chance to see how they like residing in the home in question. Many property owners would love to have had a two-year trial period on their properties prior to making the final commitment. They get an opportunity to learn about many of their neighbors, the nearby schools, the local commute, shopping, and entertainment amongst other things. These things are all essential information for those renting to see and enjoy first hand prior to making the ultimate pledge to buy the property. It furthermore happens to keep money filling your pockets month after month with excess paid to go towards the down payment going back to you if after two years (or the agreed upon time frame) they decide to not make the purchase.
Some have a difficult time making the decision to go the rentto own route when it comes to real estate investing. They believe, for whatever reason that it's gaining from some people and that is something you'll need to wrestle with by yourself. Truthfully speaking it's a service that many people hope was presented much more regularly than it is and can be a big help to those that are experiencing a bit of a tough patch yet otherwise have always been on time with payments and are, essentially, good people who deserve a break. You can quell the sentiments of profiteering by providing a good price on a set up that has the opportunity to be mutually beneficial.
Milan Doshi holds regular talks on the topic of investing in property. If you want to know what to invest in property, then come to his Property Intensive seminar organized by Wealth Mastery Academy that has helped opened the minds of many to the opportunities available in property investment.
No comments:
Post a Comment