Crucial Parts of a Rent to Own Deal

Hi Folks,
   Thanksgiving week is upon us as quickly as I think I've ever experienced it before. Does anyone else feel the same way?

   "Rent to Own Homes" are an excellent vehicle for both buyers and sellers, however, some folks throw around those 4 words in a haphazard manner with no thought behind it. When that happens, it opens the door to bad things, and some bad folks trying to profit on the backs of innocent people.

   With our 10-year anniversary celebration ongoing, by now, you should be fully convinced that we take the phrase, "Rent to Own Homes", quite seriously, and we cannot stress enough just how important it is to sort out  all of the facts and responsibilities of all parties, just as in any other business contract.

   There are certain things that the Seller/Homeowner must do, as well as certain things that the Prospective Tenant/Buyer must do, but most importantly, these things must be coordinated between both of the parties. Ignoring these things are the sure sign of legal repercussions down the road, for both parties.

   In an aptly-named article, "Questions to consider if looking to rent-to-own", Joanna Jackson, a sales manager/associate broker with Jackson Realty, wrote up a concise breakdown of these specific items.

   Basically, as you might imagine, these run the gammut between Who fixes the toilet bowl, who pays for the handyman, if needed, and plenty of "What If?" scenarios.

   Jackson list the following items the seller will need to consider; Who will tend to the property, pay for routine maintenance, and pay for major repairs? Will you be managing the property, and if not, will you hire a real estate agent (and what are the costs of those two routes)? How much does it cost to set up and manage an escrow account for the portion of rent allotted to the down payment? What if the renters bail on you? Who keeps the money in the escrow account? If the buyers change their minds, what will be required to put the property back on the market for sale?

   Jackson also lists some of the items that need to be thought out by the buyers; How much, if any, of the rent is going to the down payment? What if you change your mind (How locked in are you if you change your mind?), What will it cost you to get out of the deal, if needed?, How long will it take to accumulate enough of a down payment to help you towards qualifying for a mortgage?, Who is responsible for paying the property taxes (and other local taxes) and insurance on the property?

   These are all very open-ended questions with no Right or Wrong answer, however, there are certain local "traditions" or procedures that vary from state to state and sometimes even county to county. I fully concur with Jackson, who states that when "considering a rent-to-own deal, seek legal advice from a real estate attorney". I go one step further and suggest an attorney that is local to the property, and thus, the local laws.

   Although these above-mentioned items can seem a thorn in your side, remember one thing; these are what make a Rent to Own Deal an actual "Rent to Own Deal", vs. a shady open-ended agreement with many gray areas, which can stop you from selling your home, or, can stop you from obtaining your dream home. Nail it down the first time so everyone walks away happy!

   Have you had any good or bad experiences with a Rent to Own deal? We'd love to hear which of these suggestions came into play during the process.

   From your team at HomeRun Homes, we wish you a safe and enjoyable Thanksgiving Holiday!

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes - Rent to Own Homes, since 2002
"Located at the Corner of Technology and Real Estate"
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #RenttoOwn #Homes #buyer #seller #contract #homeowner #tenant #property #maintenance #repairs #escrow #rent #sale #downpayment #qualify #mortgage #propertytax #realestate #attorney

Selling a Home via Rent to Own

Hi Folks,

   Glad to welcome you back.

   We have some great topics ahead this week, and since we are headed into the summer, we wanted to make you aware once again of the invitation that we extended back in early April.

   In the interest of making this a "Non" Sales Pitch offer, I do recognize the fact that it can be taken by many as a sales pitch. On the flip side, if you read this carefully, you'll see that it is not (and is actually pretty cool!).

   Occasionally, we have more Buyers than Sellers of Rent to Own Homes placing Ads, and that creates a gap in favor of one type of Ad vs. another type of Ad. That being said, we currently have a temporarily disproportionate amount of Homes Wanted Ads (Buyers) vs Homes Available Ads (Sellers), and we would like to close that gap.

   In order to do so, we are extending to you, the readers of this Blog, an opportunity to list your Rent to Own Home for a period of 3-Months, at no charge (normally $16.99 for 3-Months). No entering credit card info, no payments...just listing your home. I'm going to run this offer through the end of June, or once the gap is closed...whichever comes first.

How Do You Get your Free 3-Month Ad listing your Home?

STEP 1:
Send an E-mail to me at homebuyer@lease2buy.com with the Subject; "BLOG - MY HOME FOR RENT TO OWN"

STEP 2:
We'll set up a Username and Password for you so you can log in, create your Ad, upload photos, etc.


So, To Recap...

The benefit for you - a free Ad listing your home.
The benefit for me - closing the gap between types of Ads as mentioned above.

I look forward to receiving your E-mails and seeing your homes on our website,

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

An Offer for Those Selling a Home via Rent to Own

Hi All,
   Happy April Fool's Day. What we are going to discuss today is not a joke, and there is no fooling.

   We want to make this Blog Post as non-pitchy and "non-salesy" as possible, since I feel that the following can certainly be construed as sales-pitch material by most, however, if you read it thoroughly, you will see that it is certainly not.

   As most of you know, our business consists of buyers, sellers, and service providers listing their homes, requests for a home, or their services, on our website, for a highly-competitive price (which pales in comparison to the volume of people that see their Ad and the quality/qualifications of these visitors.

   We have very recently experienced perhaps a temporarily disproportionate amount of Ads from Buyers ("Homes Wanted") vs Ads from Sellers ("Homes Available"), and we are looking to close this gap. In order to beef up our inventory of Homes/Sellers, we are offering free 3-Month Ads to anyone looking to Rent to Own/LeaseOption/Lease Purchase their home (or homes, if you have more than one).

   We are looking to run this for a little while, until we close the gap. I'm trying to be as honest and up-front about this, and if you like our website, then tell a friend (we like that!).

   I made the Two-Step process pretty simple, and if you want to list your Home for free with no strings attached (except a referral, perhaps?), here is what you need to do:

STEP 1:
E-mail us at homebuyer@lease2buy.com and use the Subject Line "BLOG - MY HOME FOR RENT TO OWN"

STEP 2:
Next, we will reply to you with a Username and Password - and then you can log in and create your Ad, upload photos, etc.

   We are trying to make it as simple as possible for you. I look forward to seeing your homes on our website, and we appreciate your time.

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Caveats When Using a Foreclosure Rescue Company

Hi Folks,

   Hope you're Holiday weekend was great, and I hope you remember to toss out any leftovers from Thanksgiving, as they should be spoiling just about now !

   We are proud to share some great coverage we received in an AOL Daily Finance article titled, "How to Avoid Getting Conned by Foreclosure Rescue Scams", by Sheryl Nance-Nash.

   The two excerpts where we are quoted are as follows:

   "The problem has skyrocketed, and may get worse before it gets better, predicts Robert Eisenstein, president of HomeRun Homes, a rent-to-own marketplace operator."

   And...

   "Don't panic," cautions Eisenstein of HomeRun Homes. "Once you panic, you lose. Don't take the bait from the first company you meet. Make sure you don't create exponential problems along with the current problems of impending foreclosure."

   This was a very good article, as there has been a spike in these tragic stories since the housing market turned sour, i.e., Rent to Own deals where the owner went into foreclosure and the tenant/buyer was left in a very, very bad position (we have suggestions to help minimize the risk of that happening - please contact me for details).

   For more on the topic(s) of Foreclosures and REO's, be sure to check out the following articles:

   Foreclosure Prevention, Improved Housing Markets...
  
   Buying a Foreclosure? What You Need to Know First
  
   Short Sales - What Do You Need to Know?

   Post-Foreclosure REO Property Maintenance
  
Have a Great Day, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Real Estate Contracts from a Legal Perspective

Hi Folks,

   Friday is upon us, and most of the leaves have already fallen here in the Northeast. The trees are bare, and this can only mean one thing - bare trees. OK, so the secret is out - I'm not a comedian.

   One thing that is not a laughing matter in Real Estate are the contracts that are used for the different flavors of deals. Today, we are going to take a look at these contracts from the perspective of Rent to Own, with input from Attorneys from 3 States; Florida, Ohio, and Texas. We will preface this with the caveat that this is not legal advice, we are not attorneys, and thus the title word, "perspective", and not guidance.

   In the State of Florida, which is always a hotbed for deals, we spoke with Charles P. Castellon, an Attorney and Counselor at Law in Florida. Castellon tells us that it is important to realize that, "The applicable protections depend on whether you’re entering the deal as seller or buyer.", and he says that from the seller's side, especially in Florida, that, "it’s helpful to draft 2 separate agreements — a residential lease and option agreement.", as, "the rationale is the buyer/option holder could more easily force the owner to file a foreclosure action rather than a simple eviction if both sides of the deal are integrated in one agreement." Castellon continues to say that, "In the latter situation, a court could deem the buyer to have equitable rights giving the buyer/tenant the same rights as a mortgage borrower, thus requiring a more costly and complex foreclosure rather than a relatively simple eviction." From what I personally understand, if a rent credit is being applied to the down payment each month, the tenant is building up equity.

   Castellon says that an owner can, "write into the agreements a waiver by the buyer of any claim that the buyer may be entitled to equitable rights requiring a foreclosure case and instead agree that a breach of the lease agreement would be litigated in an eviction case only.", and that, "Buyers should seek to have a portion of all rent payments credited toward the purchase price. Building equity for the buyer and a greater stake in the rental property is beneficial for both sides, as the buyer will think more like an owner than a tenant." Additionally, he says that, "Buyers should also insist that all cost responsibilities are clearly spelled out. For example, either side can be responsible for costs such as taxes, insurance and association fees and everything is negotiable. The buyer may want to seek some kind of protection of his/her interest in the property in the event the owner fails to pay property taxes and thus risks the loss of the property to the tax collector."

   In the State of Ohio, we spoke with Troy Doucet, a foreclosure defense and consumer litigation attorney, who says that, "Ohio law requires the inclusion of about 15 different terms into any land contract in order to make it valid. Someone unfamiliar with these requirements could generate a void contract, and cost themselves statutory damages in addition to having to refund money paid." Doucet says that, "Creating a lease that provides for the ability to purchase later creates other hurdles under Ohio law, especially with regards to recording any kind of security interest in the property", and says that his recommendation is to, "always consult an attorney in drafting these types of contracts because they can be considerably problematic for the seller and buyer if not drafted correctly."

   Finally, in the State of Texas, we spoke with Attorney Patrick E. Hudson, who says that, "Rent to own laws vary from state to state", and that "In Texas, sellers used to take advantage of rent to own buyers by taking the house back when the buyer missed the first payment, even if the buyer had paid on the home for years.", but that, "the Texas legislature stepped in and put burdensome regulations on rent to own sellers.". Hudson says that the regulations, "generally provide that the buyer has to be provided notices and opportunities to cure any default before the seller can take the property back.".

   Hudson says that the state regulations are so difficult to comply with that, "many law firms advise their sellers to avoid rent to own contracts". He does, however, mention an alternative, where, "A seller can lease the property and give the renter/buyer an option to purchase the home at the end of the lease for a good price.", which, "avoids all of the hurdles of a rent to own transaction.".

   We are looking for some additional input from real estate attorneys in other states, and we welcome your comments on this post.

Have a Great Weekend, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Rent, Buy, Or Rent to Own ?

Hi Folks,

   I Hope you had a safe Halloween with a lot of treats. Please forgive me if my style of writing is a little odd today, as the sugar rush is quite fierce this year. It is the First of November, and any way that I look at it, I am now a year older!

   A few months back, we covered the topic of, "Rent vs. Buy" in a separate post, and a few weeks ago, we followed up on the topic with a post titled, "Revisiting the Rent vs. Buy Debate". Molly Line of FoxNews recently ran a story titled, "Shattered Dreams: To Rent or Buy, That is the Question", of which I thought might be of interest to you.

   In the above-mentioned article, Line asks the question, "...is it really wiser to buy during a time of economic uncertainty? Or is renting a better bargain?". She spoke with some experts who point to the fact that people who are buying now have their financial "house" in order, and it would make sense for them to buy a home. On the other side of the debate, Line points to the positive side of renting, which means, "no property taxes, no upkeep costs, no paying for a new roof or dishwasher."

   Ultimately, there is no fine line that delineates a region of the country where people are just buying or renting...there are just trends (see http://blogging.lease2buy.com/2010/10/revisiting-rent-vs-buy-debate.html). The financial condition of the prospective buyer, the prospective tenant, or the prospective tenant/buyer (in the case of Rent to Own), would seem as if it would override most factors. Do they have a lot of debt? How is their credit? Do they have a job? Do they need a job? Just some food for thought.

   Please send us your comments and suggestions, as they always prove valuable for your fellow readers here.

Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Has the Housing Market Impacted Curb Appeal?

Good Morning All,


   Hope you had a great weekend. We spent the weekend cleaning out our attic, as well as shuttling our toddler to his classes and an ice cream party (Sugar Rush - Not good).

   It's funny how things shift in tandem when the housing market changes. Most practices and techniques are put under a microscope and are re-invented. One of those practices is preparing a home for maximum curb appeal. Today, we'd like to take a look at how the downturn in the real estate and housing markets has impacted the definition of curb appeal.

   "It is curb appeal that is designed to provide a positive first impression.", says Lisa Mekovsky, Owner of 3 Rivers Home Staging. She tells us that the, "definition of curb appeal has not changed, but its importance has dramatically increased.", and that this is due to fiercer competition.

   Julie Taché, a Broker with Homes with Cachet, concurs, and says, "More than ever, the visual has taken an important role in how buyers choose real estate. With so many properties available, an "ok" or "so-so" home may become just a drive-by, with buyers preferring the homes with substantially more curb appeal." Kimberly Gauthier, a photographer and homeowner in Washington State, has first-hand experience from both sides of the table, and she admits that they did, "most of our house hunting on line, so if the pictures weren't good, then there was a good chance that we wouldn't bother viewing the homes; there were just too many listings and this was a good way to shorten our list."

   Most of the experts we spoke with have agreed on landscaping as the most important piece of the curb appeal puzzle. Gauthier suggests adding flowers everywhere, since having a "few shrubs just didn't appeal to women. By adding loads of color, hanging baskets, and wine barrels with things growing, our showings increased.". From her point of view as a potential buyer, she said that, "Neglected landscaping will prompt me to move on to the next listing."

   Heather Logrippo of Distinctive Homes Online has weighed in with a few opinions from her expert clients. Kelly O'Ryan the Office manager of Coldwell Banker in Lexington, Ma, says that it is important to make sure that the, "Lawn is free from leaves and overgrown grass", and that it, "sound simple, but makes a huge difference".

   Elaine Leonard, the Sales Director for Northland Residential, a developer in New England, says that, "Even if you've lived in your home for 25 years, don't discount adding new trees or shrubs, they can really do wonders for the landscaping".

   O'Ryan also suggests that you, "Add a splash of color in the front - whether it's painting the front door an inviting red or adding planters with colorful plants by the front door". It's also important to keep the exterior of your home neat and organized. She advised that you make sure all yard tools and children's toys are put away, since, "you want your prospective buyer to envision living in the home which can be hard if they see your items before they even walk in the door."

   Leonard suggests adding a beautiful mailbox, which she admits sounds crazy, but she says that, "you have no idea how a beautiful mailbox can add a nice finishing touch", and , "like accessories on an outfit, a mailbox is the perfect last accessory on your home to make it appear finished and beautiful. Leonard also suggests that you do the "Hardscaping", which is, "anything from a walkway to a patio.", and , "If you have old, broken or cracked driveways or walkways, investing a little in hardscaping to fix them will pay off in the long run!"

   "Sellers must make sure the entire exterior of the home looks clean, fresh, and professionally maintained.", suggests Taché, and she advised all work (bricks, steps, siding, power washing, roof, etc) be completed before listing. She adds that, "Hiring a professional (stager for inside, landscaper for outside) are a worthwhile investment - as these people know what the public desires, and can make cost-effective suggestions to get the home its best possible showing condition!".

   As Taché concludes, "The first few weeks on market are so crucial that making sure it photographs well and that a potential buyer will see it in a positive light have never been more important to get them in the front door!"

   I hope that these tips will help you in getting more people to see your home. As a side note, however, please note that we find that these tips are "not as important" when people are looking to Rent to Own your home. Notice that I said, "not as important", since people certainly differ.

   Do you have any other tips to share? Have you done any wild things to spruce up your home in order to give it more curb appeal? We'd all love to read your comments !

Have a Great Week, and Happy Rent-to-Owning !

New Widget with Scrolling Ads from our Site

Good Morning Everyone,


   We hope you have all had a great weekend.

   OK, so once again, we are referring to that "Magical Blog Post", where we asked for your input, and you gave it to us. Over the past few Blog posts, we have already addressed The Top Real Estate Investing Markets, What You Need to Know in Real Estate Investing, The Top 5 Things NOT TO DO When Selling a Home, and What You Need to Know when Buying a Foreclosure.

   Today, we are giving you access to a Free "Widget", which is a piece of code that you can add to your website or Blog, and it will continuously scroll with the latest Buyer and Seller Ads from our website (See Below). The Widget and the Code are shown below as follows:

WIDGET CODE:

   Once the code is inserted into your Web Page or Blog, it will look something like the image on top of this Blog Post.

   If you have any questions on how to use the code or any additional questions, please let us know via commenting on this post.

   Have a Great Week, and Happy Rent-to-Owning !

Lease2Buy.com Updates, Featured, Free Offer...

Hi Everyone,
Happy Mid-week to you.

Today, we are just giving you some updates on the website, along with another FREE OFFER - Free Offers are Cool!

First, just an update on the ability to Feature/Upgrade your Ads.
We have completely redesigned and updated the Top Spot/Featured Ad Pages for the following types of Ads:

Buyers/Homes Wanted at http://www.lease2buy.com/top_homeswanted.php, and

Sellers/Homes Available at https://www.lease2buy.com/top_homesavailable.php

Both upgrade options are available either upon placing an Ad, OR, via your Login/Control Panel (from the "Log In" button on the homepage, or directly via http://www.lease2buy.com/login.php). When you log in and "View" your Ads, there will be a "FEATURE/SHOWCASE THIS AD" option next to the Ad.

Remember: There is only ONE "TOP SPOT" Featured Ad per State (we can only allow one on the top of each State without it getting cluttered).


Website Tip of the Day:
How to get "ONE FREE MONTH" added on to the Ad you have already placed !

When you log into your account (from the "Log In" button on the homepage, or directly via http://www.lease2buy.com/login.php), there is a button that says, "Survey".

If you click that button and fill out a short survey with your very useful comments/questions, not only will this be very helpful to us, but we will also add one extra month to the Ad you have placed!!

How's that for a sweet deal?

When we receive your comments and questions (on anything - the site, the design, suggestions, the market - anything), if they require a response, we will reply.

If it is an incredible question or comment, we might even post it here on the blog and respond to it here, especially if it is something that can help everyone.

Check back later in the week for more interesting news......

Have a great day, and Happy Rent-to-Owning
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Details on the FHA Tax Credit for Home Buyers

Hi All,
There has been a lot of buzz about the FHA Tax Credit Program, and for those who are not too aware of it, we wanted to list a few key points of this excellent program here:

1. Up to an $8,000 Tax Credit is available for First-time home buyers (For a newly built home or a resold home). This is confined to sales occurring on or after January 1, 2009 and on or before April 30, 2010.
2. Up to an $6,500 Tax Credit is available for "move-up" (repeat home buyers or existing home owners), who purchase a Principal Residence (Not an investment property - but an Owner-Occupied Principal Property) between November 6, 2009 and on or before April 30, 2010.

This is a very basic breakdown, but there are certain specific income limits, so be sure to check the FHA Site (http://federalhousingtaxcredit.com).

As a side note, we have been busy working on our next venture, which will be announced soon, which will extend a hand to homeowners in trouble.
Further, we have been further updating our Twitter, Facebook, and MySpace Pages and adding numerous followers and friends...which means more traffic to your Ads !

Have a Great Week, and Happy "Rent to Owning" !!