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

What is ROI and Why is it Important to You?

Hi Folks,
   Hope you're having a great week!

   Today, we are going to look at a very important calculation used by Real Estate Investors to gauge and measure potential investments. The calculation that we are going to look at is Return on investment (ROI), with which some of you may already be familiar. At the risk of going too deep into formulas, we are going to just touch on the topic, and provide you a good framework to decide if you want to research it further.

   ROI, which is expressed as a percentage (%), is the % of money that goes back to the investor (after taking into account the actual cost(s) of the investment), or Gain from Investment minus Cost of Investment, divided by the Cost of Investment. This is a very basic way of figuring ROI, but there are more complex ways to compute it, taking into account repairs, etc, but this is outside the scope of our basic discussion here today.

   What are some of the complications in calculating ROI?

   As Marc Davis writes in his article, "How To Calculate ROI For Real Estate Investments", for the Investopedia website, there are complications in Calculating ROI (some more complex than others). Some examples he provides are if the property is refinanced, if the property was bought with "an adjustable rate mortgage (ARM) with a variable escalating rate charged annually", and if there is an increase in maintenance costs, utility rates, and property taxes,

   Davis points out the following tip; "For income tax or capital gains tax purposes, however, real estate property owners are urged to get professional tax advice from a reliable source before filing". Sound advice.

   Do you use ROI when making a decision regarding your investment(s) in Real Estate? We'd love you to share your comments.

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


TAGS: #ROI #RealEstateInvestors #Returnoninvestment #ARM #adjustableratemortgage #propertytax #capitalgains #property

People Plus Property Equals Interesting Real Estate News

Hi Folks,
   Monday again! That was fast !

   A few interesting and cool things going on in the world of Real Estate, and I figured that you might find these items interesting, too.

   A "Real Estate Cafe"...yes, you heard it right ! "The Maggio Shields Real Estate Cafe in Rehoboth Beach is a fusion restaurant of a different kind; it melds real estate with breakfast and lunch", writes Diana Dwyer, in a story on Delmarvanow.com. The restaurant/office hybrid appeals to hungry people - hungry for food or property. Managing chef Aric Roork commented that the saying around The Cafe is: "Have your cake and condo, too!", The Cafe serves soups, salads, sandwiches and pastries. This concept has been catching on in other countries, as well, so they may be onto something here!

   A "Real Estate Bus Tour"...you cannot make this stuff up! The national bus tour called "Home Ownership Matters", writes Claire Simms in an article on firstcoastnews.com, aims to "educate consumers about the real estate market and changes that could be coming to the industry", and further, to "raise awareness" of possible down-payment requirement changes and about the home buying process.

   Own a Home in China? You are en eligible bachelor! "China has a strange condition these days in which a man must buy a house before a woman will agree to marry him", says a recent article on TaiwanNews.com. What is the result of this? Due to the "gap between rich and poor", the story says, "many young people are unable to afford a house and thus not able to get married", which is likely to continue in the future. Apparently, Chinese officials are "scrambling to find a way around this impasse".

   It's a big world out there with a lot of property. There's a whole world of interesting news when people collide with property ! What do you think?

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

TAGS: #China #Rehoboth #Delmarva #downpayment #Taiwan #property #RealEstate

Taking the Plunge - 3 Tips on Buying Your Rental Property

Hi Folks,

   Happy mid-week to everyone, and we ask that you arrive safely to wherever your destination is, should you need to commute in the Northeast today.

   You know, if you're renting a property, and the homeowner gave you an option to buy the property...well, how do you know when you are truly ready to buy the home? That is the question we are addressing today, along with 3 tips to help you along.

   "As a tenant with an option to own there are some fundamental principles you should consider before buying a property.", says Brian Rademacher of Re/Max Advantage Plus. First, make sure the property, "is a good fit for your lifestyle and family. Do you ultimately envision this property as your home?"

   Secondly, says Rademacher, "contact a real estate professional to review the option to purchase contract and perform a current market analysis. With declining real estate values in many markets the purchase price on the option contract may be higher then the current market value of the property.", and he suggests that if this is the case, that you should, "show the owner the current market analysis and discuss lowering the purchase price to meet the current market value.

   As a final tip, Rademacher suggests that you, "talk to a mortgage professional to determine if you are qualified to obtain a loan to purchase the property. Find out what your mortgage payment would be and if your mortgage commitment would fit into your monthly budget." As Greg Cook, a Mortgage Professional, says, "Owning a home costs more than renting. Most of the time an "all-in" mortgage payment (including taxes and insurance) will be more than the rent they might currently be paying. But that's only part of it. The tenant is now responsible for maintenance, repairs and all those other little expenses that come with homeownership." Cook also recommends to any tenant looking to , "make that jump" to find out from a, "first time home buyer specialist how much the mortgage payment would be on the home they are buying, add an additional $100-$200 each month and then take that difference between rent and homeownership expenses and put it in savings."

   "Having seen several option agreements over the years, ask yourself a 2 pronged question", says Thomas Redmond of Redmond Realty. "1st, What is important about staying in this property and the community at this time and 2nd, Are the terms in my option agreement favorable or extremely favorable when considering my local market as well as my ability to purchase elsewhere during the option period." Redmond says that if the answer is, "yes I want to stay here for a couple of years or longer but your option favors to the landlord, who likely prepared the option agreement, then renegotiate or let option expire."

   "As long as renting is not substantially cheaper than owning it would be worthwhile to become the owner and start reaping the tax benefits and building equity.", says Lenny Layland, Broker/Owner of Investorlando Realty. Layland says that the owner, "should be doing everything possible to help this happen (assuming they want the tenant to exercise the option). Credit counseling support, paying closing costs and rent credits are possible ways."

   In summary, Rademacher says that it's a good time to buy, "if the property is a good fit for your lifestyle, has a sound option to purchase contract, is priced at current market value, and meets your budget and mortgage qualifications." By analyzing these 3 items, Cook says that, "Not only will they now have an idea of what sacrifices or lifestyle changes will need to be made but they will have built up their savings which, from a lender perspective, is only a good thing.

   Redmond makes a very positive statement, in saying that you need to, "Remember you bring a lot to this transaction so do not discount your position with tenant mentality.  You can take charge help the seller to help you for the best possible outcome."

   We hope these tips have been helpful. Do you have anything to add to this list?

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

Tags: #optiontobuy #mortgage #rental

Home Insurance For the Dangers of Short-Term Home Rentals

Hi Folks,


   How is your first week of the New Year, so far? It's going well, I hope !

   I was recently interviewed for a very interesting story on short-term home rentals, with the angle of the story on some dangers and issues that can arise from these arrangements. The story, titled, "Dangers of short-term home rentals", was written by Marcie Geffner for Insurance.com, and thus, the angle also focuses on Home Insurance to help mitigate these "dangers".

   Listed below are the points/comments that I contributed for this particular story:

"Some losses are accidental. Others are deliberate and potentially more difficult for homeowners to protect against, notes Robert Eisenstein, founder and CEO of HomeRun Homes, which operates a rent-to-own property website at Lease2Buy.com."

"You want to make sure you don't have any non-owner-occupied clauses or anything that states (the policy is void) over 14 days where it's not owner-occupied, for example," Eisenstein says.

Consider an umbrella policy. Liability should be a concern as well as theft or property damage, Eisenstein adds. An umbrella policy can offer additional coverage for medical expenses if a renter or a renter's guest trips and falls or suffers another type of injury on the property. "It's definitely a concern," he says.

   For the readers of our Blog, Geffner's story is an excellent piece that touches upon some very important concerns that need to be addressed when working on a Rental deal or on a Rent to Own deal. To read the full story, you can check out Geffner's article Here.

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


Tags: #insurance #renttoown

Two Points: Selling An REO Property and Home Prices Dropping

Hi Folks,


   Hope you're having a peaceful week. 2011 is just a few days away. Doesn't 2011 sound like such a futuristic year?

   Well, today, I would like to share a post that was written by Bob Corcoran, titled, "Five Tips to Sell REO Properties Faster", and the reason that I am sharing this with you is that this post goes hand-in-hand with my post of November 26th, which is titled, "Post-Foreclosure REO Property Maintenance". Corcoran's post looks at how to prepare an REO for sale from a Realtors point of view, but is also applicable to investors or any other parties.

   Corcoran says that, "The house needs to look just like any other house on the market in the neighborhood.", and he points out his 5 tips as follows:

1. Be a cleaner: Corcoran emphasizes that you, "have to be willing to do what it takes to get the house sold."

2. Think colors: Corcoran states that, "Red says to stop and yellow adds a warmth and coziness."

3. Add smells: "If it smells like bad, it doesn’t matter what it looks like.", says Corcoran, who suggests using air fresheners and a fresh pot of coffee. He says that, "The smell of coffee imparts the best of emotions. It tells people this is a good place to raise kids, it gives a warm and a comforting feeling."

4. Put up signs: Corcoran says that when you're marketing an REO property, "you need to make sure that it’s depersonalized and use cue cards – white piece of paper on the wall – that explain to prospective buyers the positives on what’s been done to the property."

5. Communicate often and regularly: This tip refers to the relationship between the bank and the Realtor, and Corcoran advises that, "When banks assign the Realtor to a property, it expects them to become the eyes and ears for everything that has to do with that property."

   These are some fantastic tips, and are of great use to the entire Real Estate community.

   Now, on to Part 2 of this post: The S&P/Case-Shiller Home Price Indices were released yesterday, and as per the report, "Six markets – Atlanta, Charlotte, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007". Bright Side? It looks like the major cities in California bounced back. Do you live in California? If so, this might make you happy?

   Thanks for hearing me out! Comments? Questions? Suggestions? You have tons of options for feedback here.

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

TAGS: #reo #foreclosure #realtor #realestate

Drumroll...Your Top 5 Favorite Blog Posts of 2010

Hi Folks,


   Welcome back to Christmas week. If you were anywhere near a mall or a shopping center this week, you know that the traffic was at a crawl and the stores were bursting with people. You would think there was no such thing as a recession !

   Well, it's time to get all nostalgic with you. You have all gravitated to certain posts this year, and we are going to give you your Top 5 Favorite Blog Posts of 2010, starting with #5 and rounding it down to the Top Post of the year !

   Coming in at #5 is the Blog Post titled, "Post-Foreclosure REO Property Maintenance", in which we investigated into how the REO properties are being maintained while they are unoccupied.

   Coming in at #4 is the Blog Post titled, "Buying a Foreclosure? What You Need to Know First...", in which we spoke to numerous experts and foreclosure "gurus" for their suggestions on how to navigate the foreclosure property marketplace.

   The #3 Top Blog Post is titled, "Private Money...Any Available For Real Estate Deals?". In this post, we spoke with members of the lending community to gauge the availability of private money to fund Real Estate deals, and we received a number of different perspectives on this topic.

   Coming in at #2 is the Blog Post titled, "Top 5 Concerns When Selling a Home FSBO", which received a lot of traction and was ReTweeted and used in many articles and write-ups, due to the useful tips provided in the post. The sub-topics of selling a home as a "For Sale By Owner" (FSBO) that were covered in this post were Legal Concerns, Preparation of the Home, Mechanics of the Sale, Addressing Security Concerns, and Marketing the Home.

   Drumroll Please !! Your #1 Blog Post based on views, Tweets, Diggs, etc, was, "Right Time to Buy? Top Real Estate Investing Markets", in which we discussed the hottest markets for Real Estate investments. We spoke with many experts and investors across the country to provide you the best possible information. Even though this post was written a few months back, not a lot has really changed, so it is still worth a read and worthy of sharing with your peers.

   So, there you have it; The Top 5 Blog Posts of 2010, based on your views and usage of the content. We hope that we can continue to provide you with valuable and useful content, and all we ask of you is your faithful readership, your valuable comments, and for you to Retweet and Share our posts using the handy little buttons and links below the posts and on the side column of the Blog.

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/


#realestate #foreclosure #realestateinvesting #reo #forsalebyowner #fsbo

UPDATED: Post-Foreclosure REO Property Maintenance

Hi All,

   I hope you had a wonderful and relaxing Thanksgiving dinner, and we are glad to have you back here with us today, from wherever you may be reading this.

   We have had a tremendous amount of requests to cover the topic of REO properties and the manner in which they are kept from becoming eyesores and danger zones. In order to garner the best information, we spoke with a few people who deal with REO properties on a daily basis, and we have received some valuable information from them that we would like to share with you today.

   How are Foreclosure/REO Properties being Maintained in while they are Unoccupied?

   Edward Harris, Owner of REO Clean Up, tells us that the REO maintenance process for his company starts once the, "HUD/Bank receives a foreclosed property into their inventory and that property is turned over to their integration contractor/Broker.". Once they receive the property they send his company a "work order to go out and perform an, 'initial inspection'." Harris say that this report provides detailed information of anything left behind by the previous owners and also any visual problems with the home. The next step after this report is sent back to the IC/Broker is that a, "a work order is generated from the 'initial inspection report' regarding any issues. This work order is referred to as. 'Initial Services'."

   Another professional we spoke with, Mia Melle, President of West Coast Property Specialists, says that, "How these properties are managed during times of vacancy differs from company to company and also depends on what the owner intends to do with the home - rent or sell or sometimes nothing at all.". Melle provides an example of Fannie Mae, which, "uses the agents who are going to list the home as interim property managers and usually they are unpaid!", so basically it is the listing agent's responsibility to, "coordinate lock changes, landscaping, board ups, etc.", and surmises that the fact that they are unpaid for this service, "speaks to the fact that so many homes go uncared for and turn into neighborhood eyesores."

   Adam Roberts, a Community Development Loan Specialist in the St. Louis/Midwest Region, concurs, and says that, "many of the REO properties are not being maintained to a "neighborhood friendly" level. Lenders are neglecting to manage these properties because there is an overwhelming(ly) large number."

   Melle says, however, that she has seen other types of financial institutions use property management companies to handle their vacant inventories but she reiterates that, "the companies are often doing this for the opportunity to either list or manage the property in the future and are offered next to nothing (in) compensation to oversee the homes."

   Who is Keeping these Properties from Becoming Overgrown?

   Harris says that once his company receives an "Initial Services work order", they perform the following; "trash out services, Janitorial, grass cut and any safety issues are given immediate attention. Once we receive a work order the property is in our inventory for routine services until the property is sold." He says that "Routine Services includes bi-weekly visual inspections, grass cuts, picking up any trash, re-fresh janitorial cleaning, re-fresh of winterization during the winter seasons, snow removal", and, "If a roof problem for example, is found during a routine inspection I would have someone rectify the problem ASAP."

   Roberts says that "fortunately" through local law enforcement and code enforcement the properties have some maintenance such as, "occasional lawn mowing and boarding up windows and doors." Still, however, Melle says that, "Landscaping is one of the issues that lack thereof is the most noticeable to the neighborhood and it's one of the harder services to obtain for anyone whether you are a bank, property manager, or listing agent.", and says that, "The reason for this is that gardeners are a very local type businesses and you cannot find them on the Internet, the yellow pages or elsewhere. Normally, if you live in the neighborhood they will drop a flyer off at your door periodically but other than that.they are extremely hard to locate and hire from off site. So, as a result the landscaping may or may not get done regularly or at all.", and says that, "It's definitely an issue that we've had in our company with these types of portfolios."

   Who is Protecting these Properties from being Burglarized (for Copper Tubing, etc)?

   Harris says that during the "initial inspection", the property is secured, locks changed, hasp/pad locks if needed.", but he says that, "Obviously we can’t have someone at the properties 24/7, the visits of the routine inspectors and neighbors aware of the home can be/hopefully a deterrent for any theft. But if there is a burglary we notify the authorities, find out how the burglar got into the home and re-secure the property."

   Roberts concurs and says that Local law and code enforcement, "report the break-ins and then requires the lender to board up windows and doors.", and that, "Unfortunately after this happens the home becomes unmarketable to "real people" and the best chance of the home moving on the market is now in the hands of an investor, which means another short sale."

   Who is Keeping Squatters from Living in the Property?

   "There have been cases of squatters but not many with our company.", says Harris, who continues to say that, "If our routine inspector doesn’t find evidence of a squatter then we are called by a neighbor. Keeping the squatters out can sometimes be a task." Harris says that, "At one property, the squatter broke the door three different times. The first two we re-hung the door and put two padlocks and hasp on the door. The third time our inspector arrived for his routine inspections and found the person in the house and was able to call the police. They were able to apprehend the squatters." On a positive and hopeful note, Harris says that, "Our continuous presence at the properties we hope prevents illegal activity."

   Roberts says that, "Unfortunately these homes are sitting unoccupied for extended periods of time which makes them highly susceptible to burglary and squatters." He says that, "After initial vacancy the home has windows and doors, (and) in a few months, squatters and burglars target the home. They begin by stealing the air conditioner. Then when they realize neighbors are too scared to come out and confront them, they break in doors and windows and start cutting out the copper and other valuable items in the home." he says that in the end, at best, "local law and code enforcement are mandating maintenance to the best of their ability", but, "unfortunately these dismal efforts are only making the public aware that these properties are foreclosed, unsafe and jeopardizing the stability of the neighborhood."

   How many vacant or unoccupied properties have you been seeing popping up lately? Have they been maintained fairly well or do they have the "REO 5'O'clock shadow". Let us know so we can all share some information and new ideas and strategies to help our neighbors.

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


TAGS: #foreclosure #shortsales #reo #realestateinvestors #realestate #propertymanagement #hud #property




UPDATED: Top 5 Blog post for 2010 (For more information, CLICK HERE)

Revisiting the Rent vs. Buy Debate

Hi All,
   Happy Columbus Day to you. For those of you who have the day off, congratulations. For those of us working, well, we have to work today!

   Back in June, we covered the much-debated topic of "Rent vs. Buy", and Trulia has released their Rent vs. Buy Index. As Blake Ellis, a staff reporter with CNN Money notes in his article, "Where to buy and where to rent", Trulia is using the following rule to make the Rent vs. Buy determination: If the home price is 15 times higher than the annual rent for a similar property, it is better to rent.

In terms of which cities were mentioned, Ellis cites Trulia's index as follows:

Where to Buy a Home:
Miami, Detroit, Jacksonville, Arlington, Columbus (OH), and Nashville

Where to Rent a Home:
New York, Seattle, Fort Worth, Omaha, Kansas City, and San Diego.

   How do you think Rent to Own fits into the picture? The funny thing is that it could apply to any of these cities, since it is often situation-specific instead of market-specific. Do you Agree? Disagree? Please let us know.

   Do you have any additional recommendations for any other cities not mentioned here? Let us know, as there might be an buyer, renter, realtor, or investor reading this, and we all like to share and help each other.

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

UPDATED: Right Time to Buy? Top Real Estate Investing Markets

Good Morning,


Happy Friday! With the dreaded humidity taking a swan dive here in New York, it should make for a nice and dry weekend...finally !

As we discussed on Wednesday, we had a ton of requests for us to discuss the hottest markets for Real Estate investments. Keep in mind that these requests were NOT for the hottest housing markets for the standard property buyer, however, for the top Real Estate investing markets.

We warn you - this is a long post - but there is valuable information here !

We have turned to some experts in their given regions, and we have summarized these markets below. However, keep in kind that they are not in any specific order, and we would need to compare apples to apples in order to put them in top to bottom order, which for our purposes here, is outside of the scope of this Blog post. However, some corroborating reasons are given along with each city/region listed below.

Detroit: We had two experts weigh in on the Motor City. Dennis Fassett, a local investor, tells us that, "Nice brick houses in the suburbs with three bedrooms, basements, appliances, garages, and fenced yards can be bought for $40-50,000 or even less in some cases depending on the area. And the properties I have bought like that rent for $1000 per month and up. The ROI is off the charts.". Fassett says that he currently has, "11 houses and 43 apartment units here, and two more deals in process, and I'm looking to buy as much as I can while the market stays depressed."

Drew Sygit of The Lending Edge at First Michigan Bank , concurs, and states that, "Detroit the city is pretty hot. Meeting today with an Australian CPA who's clients all want to buy $30-50k properties they can rent for $900/month. We've got more foreign demand than domestic!"

Memphis: We spoke with Ryan L. Hinricher, a Senior Housing Analyst with Investor Nation, and he said that, "In Memphis an investor who's looking for income property can purchase pristine investment homes at or near median home prices of $115,000, which offer a positive cash flow, or properties as low as $5000 in areas typically higher in crime and lower in income for section 8 rental purposes". Hinricher also reminds us that, "Memphis was recently named one of the 5 best housing markets for 2010 by MSN, Realty Tracs best places to find a foreclosure in 2010, US News and World Reports #1 place for real estate steals in 2010, and Smart Moneys 5 markets expected to fare best in 2010. This is primarily because the transportation industry is one of the first to lead an economic recovery.".

Orlando: Phil Peachey, a Realtor with Regal Real Estate Professionals in Orlando, Florida, says that, "I have apartments at present at $20,000 and 4 bed 3 bath homes with pools near Disney for $100,000. These were 3 times the price a couple of years back.", and that, "Savvy investors are snapping these up in large numbers as they know the market has to come back at some time". I have to concur, as we got our start in the Orlando/Central Florida market, and that seems like a perpetually favored region.

St. Louis: Adam Kruse, a St. Louis Realtor of The Hermann London Group, advises that a lot of the investors are making their own rules on the purchase criteria in that city. Kruse says that, "There are areas of St. Louis where people just don't really buy as primary residence, but they buy them all the time to hold for rental",and says that he has a client who advises him to, "Take the purchase price, subtract off the last 2 zeros, double that number, and I want to be able to get that for rent.", and that they have helped him buy at least 15 places with that criteria. (example: purchase price $35,000, rent amount $700+ per month.)

California: Griff Straw, President of Solidifi, a technology-based appraisal management company, tell us that in California, "Coastal areas continue to offer good opportunities for investors, especially in California, where San Diego has been among the strongest areas in the country. The more remote coastal areas like Oxnard, north of Los Angeles, are less of a sure thing for shorter term appreciation, but may offer potential.

Some Additional Areas that show promise for the Real Estate investor have been identified by Alfred Miller President of Private Lending Solutions, LLC. Miller has, "identified the discount and cash flow properties as well. These are investor friendly markets". The markets he mentioned are Dallas-Fort Worth-Arlington (Texas), Houston (Texas), Tulsa (Oklahoma), San Antonio (Texas), Salt Lake City (Utah), Phoenix (Arizona), Indianapolis-Carmel (Indiana), Denver-Aurora (Colorado), Oklahoma City (Oklahoma), and Charlotte-Gastonia-Concord (North Carolina/South Carolina)

We hope that this list will be of significant help to you. We welcome your comments on any and all of the cities mentioned above.

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


UPDATED: Top 5 Blog post for 2010 (For more information, CLICK HERE)

Canadian Real Estate Magazine Interviews HomeRun Homes

Hi All,

   We were just notified by Canadian Real Estate Magazine (www.canadianrealestatemagazine.ca), that they have published an interview that we did with them on the Rent to Own Market. The segment that we are featured in is exclusively included in the physical magazine, so I have attached a copy of the article as well as a link to the file on our site (CLICK HERE FOR THE STORY).

   The article covers the many aspects of what a Rent to Own is, looking at it from the angle of Rent to Own Homes in Canada, and it begins as follows, "The rent-to-own option could prove to be valuable as lending guidelines make it more difficult for Canadians to obtain mortgages. Kit Kadlec recently spoke with Robert Eisenstein of Home Run Homes, a U.S. company that helps homeowners find rent-to-own buyers..."

   The two largest markets for Rent to Own Homes are both the US and Canada, and we are glad that we are able to help people buy or sell a rent to own home in each country.

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

Revival and the Life Cycle of Neighborhoods

Good Morning Everyone,


   Hope you're all having a great week. Things are just soggy and humid here in New York, and we eagerly await the return of the sun. Sounds like a great title for a book!

   On the topic of water, it's amazing how towns and neighborhoods go through revivals and declines. We are about 1 mile from the town lake, which back in the 1950's, was the hot spot for people who lived in the city (about 50 miles out). It was the perfect spot to escape the heat without making the trek the rest of the way to the Hamptons.

   Somewhere back a bunch of years ago, the immediate area surrounding the lake began to decline, with the homes and properties falling into disrepair, and the quality of that little area diminished. However, due to some fantastic community efforts, that area is now on an upswing. There were some unoccupied, older-style mobile homes that were in horrendous shape, and these have been torn down for some new lake home developments. In addition, there have been a few incredible new playgrounds that were built (we frequent them with our toddler, so we have become "playground connoisseurs").

   The point that I'm trying to make is that we have seen all of this change within the past 5 years, during one of the worst recessions that most of us have ever seen. Sometimes, the life-cycle of towns, neighborhoods, and communities can operate independently of the greater economy.

   May this be your inspiration for today; no matter what the bigger picture may dictate, be strong, push forward, and keep your ultimate goal in mind, as long as it is ethical.

   We would like to start a new feature here on our blog, since we have had a few people ask us about it, so we are definitely considering it. So, do you have a property you'd like us to feature here? If so, E-mail us at homebuyer@leasebuy.com with the Subject Line, "Feature My Property on Your Blog"

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

 

Silly Real Estate Sayings, Huge Traffic, Featured Ads...

Happy Monday to Everyone,

A taste of fall is in the air here on the East Coast, but as we all know...not for long!

We have a very exciting week ahead, as many of you who already have Ads on our website can imagine. We have had a humongous surge in traffic on the website over the past few days, and a lot of you have been deluged with responses to your Ads.

Please always respond to them as quickly as possible to show them you are serious, and that you want to rent to own your home or find a rent to own home fast ! With the end of the FHA Tax Credit, people are realizing the benefits of rent to own more and more each day.

Website tip of the week: With all of this huge additional traffic, this could be a great time to put your Ad on top of the State page where you have the Ad, so these visitors see you before anyone else! (We described this feature in detail in the following blog post: http://www.blogging.lease2buy.com/2010/04/lease2buycom-updates-featured-free.html

One of our customers suggested this to us over the weekend: "Get more Sellers selling lower priced properties.". The short answer is that we can't control the values of the properties that are posted on our site. Now, that being said, price is relative, and by that, I mean that a price that is high for one potential buyer might be just right for another. A quick glance through our site will show prices on the very low end numerically, on up to a few mega-mansions with high-end numbers. It's all a matter of taste and preference. A seller of a "low-priced property" may be in just as much of a need to sell their property as a seller with a "high-priced property". Again, "relative" sums it up.

Some food for thought on a very interesting article on Yahoo Finance, titled, "4 Biggest Lies in Real Estate". To summarize, they listed them as: Phony Photos and Videos, Valuations Lacking Value, Mortgage Rates You Can't Get, and Unreal Property Descriptions, plus, they also tossed in a "Euphemism Alert".

The interesting thing about the Euphemism alert is that all of you have probably read these types of Ad descriptions, for example, "Handyman's Special" (you have to gut the whole property first), and "Great View" (you'll break your neck twisting your head out the window to see the water). Some of these just go with the territory, and the old rule of "Caveat Emptor", or Buyer Beware, applies here.

Either way, this makes a great educational read for those of you on either side of the table, as a buyer or a seller.


We will check in with you during the week with more information.


Have a great day, and Happy Rent-to-Owning !

Special Offer, Social Media, Mobile, Home Prices...

Hi Everyone,
Happy Friday - we made it through another week!

It's been a busy week here, and we want to cover a few things, as well as announce a New SPECIAL OFFER, since the one from last week was a HUGE hit with everyone!

First off, some business:

We continued aggregating our site across the Social Media Aggregation sites to ensure our Blog reaches new visitors - in plain English - this means more and more visitors to your Ads - a very good thing !
Additionally, we continued developing StopForeclosureRenttoOwn.com, our newest venture, with the goal of reaching people in desperate need of housing!
Last but not least, we continued preparing our site for Mobile users - it's a huge project, since there are so many models of mobile devices, but very important!

Next - Upcoming Economic Events:

Tuesday 4/27 - S&P/Case-Shiller Home Price Index:
Per Standard and Poors Site:
"The S&P/Case-Shiller Home Price Indices measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States."

Now - for the SPECIAL OFFER:

For Every Ad placed, whether it is a "Home Wanted", "Home Available", "Home Service", or "Commercial Property" Ad, you will receive a Free Copy of "SECRETS OF RENT TO OWN" (Click here for info on this book)

Now, normally, we only do this when you purchase an Ad of 3-Months or longer, however, just for today - that is until 12 Midnight EST today 4/23 - when you order ANY Ad (1 month and longer), you will receive a free copy of the Guide

Sounds Good?

OK, here's how this will work, step-by-step:

1. Place an Ad at one of these links (click on of the following links):
Looking for a Home? - "Home Wanted" Ad
Selling a Home? - "Home Available" Ad
Offering a Service? - "Home Service" Ad
Offering a Commercial Property? - "Commercial Property" Ad

2. Remember - the above pages will say you get the book for a 3-Month or longer Ad...This is a SPECIAL OFFER direct from management!

3. Once you have placed your order, send an E-mail to homebuyer@lease2buy.com with this subject:
"Ad Placed - Send me Secrets of Rent to Own"...we will verify, and then E-mail it to you immediately.

Remember - this is a SPECIAL OFFER to our members !

Thanks, have a great day, a great weekend, and Happy Rent-to-Owning !!

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" !!