HomeRun Homes Rent to Own Homes Blog

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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label rehabbing. Show all posts
Showing posts with label rehabbing. Show all posts

July 5, 2012

Developers Say, "If You Build Them, They Will Rent Them"

Hi Folks,
   Hope you had a great July 4th, and if you were lucky enough to snare a 5-day weekend, then good for you !

   It always amazes me to see the things people do to adapt to the financial environment, but when you start looking at what large companies do to adapt, you quite often will see a slower response, as the inner mechanics all need to line up, however, that is not always true!

   With the bump in May building permits spanning both single and multi-family (apartment), this indicator of future construction made it to the best levels seen in about 4 years. With this market direction, a large number of Developers are building single family homes as rentals, per a recent article on CNBC.com, titled, "More Builders Are Turning to New Market: Rentals".

   The interesting point, the article says, is that, "Historically, builders did this largely in low-income, government-subsidized housing projects", but goes on to say that the "market is quite different today." One such developer mentioned was Joe Petersen of Insight Real Estate Strategies in Texas, who said that "there are so many people with mortgage issues … and just recognizing these issues will not go away soon, we felt like how could we deliver high quality rental housing in a product that single family homeowners would appreciate?”. The answer: high-end homes built specifically as rentals, which takes all of the variables into account (mortgage industry, economy, etc).

   Petersen is clearing land and raising money to build single family homes just outside Ft. Worth, and does mention that a lot will be different in this type of construction, including the maintenance and business plan, but he "believes demand is strong enough for him to be able to charge premium rents"

   Petersen is banking on the fact that since rent homes are typically "not the nicest homes", that he will be able to offer people something different, "having a professional staff on site, maintaining and managing it", in which they can "offer a lifestyle very different from a part-time Realtor or a homeowner who’s renting it because he can’t sell".

   Now, back to those "rent homes". Per the CNBC.com article, Beazer Homes recently launched a “pre-owned” business, “for the purpose of acquiring, improving, renting and ultimately reselling previously owned homes within select communities and markets which we operate,” according to its recent 10-Q.

   Taking this a step further, Beazer is "buying foreclosed homes", "rehabbing them, then renting them with the intention to ultimately sell.", so in other words, Rent to Own. Petersen is also keen on the Rent-to-Own option. He intends to build up to 300 homes, and will use the rent-to-own option just as other builders have; "to alleviate a backlog of unsold homes and reduce carrying costs."

   What are your thoughts on this strategy?

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

TAGS: #realestate #developer #buildingpermits #futureconstruction #builders #rentalhousing #renttoown #rent-to-own #foreclosedhomes #rehabbing #realtor #homeowner

May 12, 2010

Great Real Estate Deals, Home Staging, Rehabbing....

Hi All,

Happy Wednesday to everyone.

It's been an exciting week at the HomeRun Homes campus, and to all of you who have thanked us for bringing you such a deluge of quality responses to your Ads...you are quite welcome. Our goal is to bring traffic to our website so buyers or sellers can find you, and you can Find a Rent to Own Home or Sell a Rent to Own Home. Basically, we are just doing our job, since we work for you!

We wanted to re-emphasize a fantastic article, called: "7 Cities With Great Real Estate Deals", which runs down some of the hottest returning markets. If you read through the article, you'll see that there are a lot of unpolished gems out there. Further, you will see our name mentioned in the article for Atlanta, and also for Orlando, Florida (and Central Florida), since we believe that these are two of the hottest markets right now.

This leads me to the next item, which is that our 8-Year anniversary is around the corner. We originally got our start buying and rehabbing homes in Central Florida (Read our full background here: http://www.lease2buy.com/rent-to-own-homes.php). One of the first homes we renovated is this one:

We will tell you more about this in the coming weeks, as our June anniversary approaches, along with some fantastic offers...stay tuned for your exclusive opportunities to be announced here in our company Blog!

The last item that we wanted to discuss is Home-Staging, which has gained quite a bit of momentum in the recent market. For example, I have a neighbor who was stuck in his home for 8 months, he could not sell, and he was not in a position to Rent to Own the home. I had a Home-Staging company get in touch with him, and they came in and revamped his entire home. During his next Open House, he got a few offers, and he is actually in contract now. This is a handy service. Are you a Home Stager? If so, please tell us more about your work.

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