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 rent to own. Show all posts
Showing posts with label rent to own. Show all posts

October 18, 2013

Buying a Home? Read This First

Hi Folks,
   I hope all of you have been well, and thanks for all of your correspondence.

   The reason we are all meeting here together in this Blog is for one purpose; Real Estate. Albeit a broad industry composed of multiple niche subdivisions, it all comes down to buying and selling properties. Today, we will turn our attention to buying properties, and we'll focus on some essential things that homebuyers should be aware of before making a purchase.

   Let's step back for a moment and look at all of the moving parts here in the most common of scenarios: A buyer will utilize the services of a Real Estate agent to find a home, make an offer, and if the offer is accepted, the buyer will then utilize the services of a mortgage broker/banker to gain access to funds. Are you with me so far?

   From another angle, you are buying a house, and borrowing money (paying interest, points, etc). To be more specific, as John Maxfield of the Motley Fool wrote in a recent article, when you buy a home, you're making two purchases, and says that, "the loan itself may be the most significant piece of the transaction".

   Some other points that Maxfield touched upon was that you should look at your Real Estate agent as a partner, and additionally, that you need to keep resale in mind from the beginning. A good suggestion is to start doing your homework on agents and ask around. Check their reviews online, if you can do so locally. Speak with neighbors in the area you are looking to buy a home, and start gathering names and suggestions for you to investigate further. Once you have narrowed down your options and decided on an agent, start building a relationship with them. Only then will you be able to confidently discuss the eventual or possible re-sale of your home while looking to purchase it in the first place.

   Maxfield says that most of us "delude ourselves into thinking that we actually know something about real estate", but says that the truth is that "few of us have any idea what we're talking about". I think this statement is especially true for those that are won over by a home and fall in love before the inspection. Maxfield says that, "Homes are like people -- they all have problems", and that the "shock generally comes when prospective buyers get their inspection reports back". That's when some tough decisions need to be made and some negotiations have to take place (regarding who makes repairs, who pays for them, and so forth). Not the most exciting time of the homebuying process...take my word for it!

   Look, the truth is that the right home is out there for you. If you educate yourself, learn the market, know what you will be facing as far as home price, mortgage "price", possible resale value, and whatever else might be necessary in your state, you will prevail.

   Remember, if you want to take a softer approach to buying a home, the answer is quite simple; look into Rent to Own. You're certainly on the right website for that option !


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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: #buyhome #realestate #agent #broker #mortgage #inspection #renttoown



August 14, 2013

Printing Power, Redefined !

Hi Folks,
   I hope all is well, and I'm glad to be back here with you.

   The good people at Epson have provided me a wonderful opportunity to test out their Epson Workforce Pro WP-4533, which has truly made an impact in my chaotic office.

THE PRINTER:
   This is a solid multifunction machine! The Epson Work Force Pro WP-4533 has some pretty slick features, such as the ability to Network it or print from devices over the Apple or Google Cloud-Print types. It tops out at a maximum printing resolution of 4800x1200 dpi, but in work-horse mode, it also acts as a two-sided printer, plus it functions as a Copier, Fax machine, and a Scanner. Scanned images can be saved to a PC or a flash drive, saved to PDF file format, or sent as E-mail.

PROs:
   Let's start out with the positives; I'm a tech-guy, and I have unboxed some messy equipment before, but this was a snap. Great instructions and very easy to assemble, with the installation of the four ink cartridges, and no need to toss everything when it's gone. Real quality machine, and great value!

CONs:
   The printing speed is 16 black pages per minute, a little slow, but just fine for my team. Additionally, the printer sleeps in a power save mode, but it wakes up fast! The LCD control panel is a little small, for those of us with imperfect eyesight.


THE BOTTOM LINE:
   This is a turn-key printer that provides you with not only a printer, but also, a copier, scanner, & a fax. Additionally, it is quite a bit less to use that a laser printer.



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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
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: #Printer #Epson #review #renttoown




September 28, 2012

You're OK, We're OK, They're Locked Up !

Hi Folks,
   I hope all is well.

   Not many companies have the audacity to say this publicly, however, if you cannot be honest when speaking to the good people who visit your website and blog, to which you've dedicated over a decade working on and enjoying...well, then is it all really worth it? With all of that babble out of the way, we had some malware hit our site last weekend. Immediately, I know this question would be on the minds of at least 99% of you: We had no compromise of personal data. This was not a breach, but more of a nuisance than anything else.

   I'm not one for acting like a parrot, but let me repeat that line above: We did not experience any compromise of personal data. This was not a breach, but more of a nuisance than anything else.

   This particular type of malware was a low-level one, which would redirect you to advertising for things that could be considered moderately vulgar, and if you've experienced any weird pages ("Redirects") via our site last weekend, I personally apologize, however, we have not received any reports (yet, we prefer to err on the side of caution!).

   Thankfully, the good folks at Hostway, the company that hosts our web server/web site (they are referred to as a "hosting company"), maintain our website on a PCI/Secure server, and they snapped into action to help us rid the pesky code that caused the issue. Kudos to the whole team at Hostway!

   Now, some of you who feel infuriated by those that make such malicious attempts on websites, such as the ones perpetrated against Apple and GoDaddy just recently, will take solace in the following updates I will now provide you with, so keep reading!

   We have been in business for 10 years, and we have an extensive reach into many emerging markets that are ripe for the "Rent to Own Home" model to stoke their Housing Markets and Economies. One such market region is Eastern Europe/Ukraine/Russia. With some well-cultivated local contacts, and along with the U.S. Consulate Offices in 2 different countries (and yes, a few Federal Agents in the family doesn't hurt, either!), we have been able to locate the source of this intrusion via traffic/timing pinpoint, and have apprehended the group of snot-nosed teenagers (18-20 year olds) who did this. If I had time, I would fly there for their trial, and spit in their faces! However, I believe in our system of justice, and we model ourselves on not being barbaric and crude as many others tend to be.

   The sad thing here is that with the amount of work they put into their devious art, and with their intelligence, they could have collectively worked with us to advance their Economies, and make even more money. Well, I certainly hope they will enjoy their jail cell, which I have been made aware of the physical locations they are being held. I did a quick Google search on these places, and I think they'll be paying quite well for their sins. To this, I smile, and I say, "May all of those out to disrupt our economy enjoy the comforts of a rotten filthy jail cell". Hey fellas, here's a tip for your stay behind bars: Don't drop the soap !!

   We bring you truth, whether it's admitting a bump in the road, or showing you how powerful our site is in helping you Buy a Rent to Own Home or Sell a Rent to Own Home.


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
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: #malware #redirect #blog #website #renttoown #home #hosting #webserver #website #housingmarket #Europe #Ukraine #Russia

July 15, 2012

A Page Turns on The Housing Market

Hi All,
   Well, it finally happened. Finally. The hype and the media coverage about it's imminent return have all been fulfilled. The U.S. Housing Market has finally began crawling back up from the bottom.

   It's been a long time, about 7 years, and a lot of ugly things have happened during that time, but most of the home price indices are starting to head back up in the right direction. In a recent WSJ article by David Wessel titled, "Housing Passes a Milestone". David Blitzer of S&P stated that "We finally saw some rising home prices", and reported the first monthly increase in prices after seven months of declines.

   Aside from prices, we all know the impact of housing inventory. It's simple Supply and Demand Economics. In what was called a surprise, the inventory of existing homes for sale has fallen "close to the normal level of six months' worth despite all the foreclosed homes that lenders own", per this article, and adds two additional key points, which are that a fraction of homes that are vacant is "at its lowest level since 2006", and that the amount of existing homes that were sold in May 2012 was 10% higher that those sold in May 2011. Wessel notes that many of these homes were purchased by investors "who plan to rent them for now and sell them later", which he infers to as "an important sign of an inflection point". We can surmise from our angle that the amount of homes being sold via Rent to Own is trending upwards from what we are seeing from our Rent to Own Homes website.

But can this just be a statistical aberration?

   Wessel provides an additional reason why this seems to be the real deal. Aside from the reduced inventory of homes that will support the higher prices, he also points to the increase in construction of single-family homes. Comparing May 2012 to May 2011, "Builders began work on 26% more single-family homes in May 2012" than the previous time last year.

   There is still a long way to go. Wessel mentioned some things that we should not forget: Single-family housing starts are still 60% below the 2002 "pre-bubble pace", Americans' equity in homes 25%, less than it was in 2002, and more than one in every four mortgage borrowers "still has a loan bigger than the value of the house". But "the housing bust is over", which for many of us, is music to our ears.

   Have you seen any signs of the Housing Market turning around by you? We'd love to hear.


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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: #HousingMarket #homeprices #housinginventory #foreclosedhomes #existinghomes #builders #singlefamilyhomes #renttoown #mortgage #investors

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 !
Regards,
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

June 18, 2012

Real Estate Finance 101

Hi Folks,

   Hope you've been well, and I'm glad to be back here with you !

   For some of you reading this, you are Real Estate Gurus, and you can finance a home in your deepest sleep. For the others, you are obviously familiar with Real Estate on some level, so with today's post, I'm trying to hit on all levels of Real Estate Skills.

   Financing. Without it (in one form or another), Real Estate would not change hands. Financing is a very broad term, and when discussing Real Estate, it helps to break the topic into “Traditional” and “Non-Traditional“.

   In an article on the RealtyBizNews.com website, titled, "Real Estate Money Basics – 10 Ideas For Financing a Home", the author describes the traditional category as inclusive of "government insured loans like FHA, VA" and others. They mention the fact that since these loans are “insured”, that "they generally require the borrower to jump through a number of “hoops” in order to qualify.", and that they require, "better credit scores, documented income, a careful review of your bank statements and any other information the lender may happen to require", and in addition, they "generally offer the lowest down payment options".

   FHA, the best known, can be "applied to almost any home, in any location, as long as the home meets certain condition requirements and the buyer can meet the credit and income requirements", says the article. If you are a Veteran, you may be eligible for a Zero down payment VA loan.

   Since these loans are “government insured” to "protect lenders from a borrower default", they still will "allow" borrowers to "buy with a low down payment, and still avoid a higher interest rate", and in return, the lender can "make a “claim” for insurance if the property goes into foreclosure". RealtyBizNews.com says that these loans are "very expensive", and include funding fees” and other costs that are "rolled into the loan".

   Now, onto the “non-traditional” financing sector, which deals with the purchase of a home "without the hassles of qualifying for a traditional loan".

   Even though these options are "open to all buyers, they are not very well known to the general public", say the article on RealtyBizNews.com, and calls this "creative real estate finance” a group of strategies in which "real estate investors spend a great deal of time studying and practicing", and that most of these strategies "will not require good credit, and a few don’t even require the buyer to have any money of their own."

   Some examples, but we'll lead off with our personal favorite: "Lease with an Option to Buy" (or "Rent to Own")

   Lease with an Option To Buy, as described on RealtyBizNews.com, is a "popular strategy for buyers who don’t have good credit and don’t have money for a down payment", where the "tenant/buyer finds a property to rent, with a landlord who is willing to credit them with a portion of the rent towards a down payment". Over the course of the contract, "If the buyer pays their rent on time, and accumulates credit towards a down payment, they can then “exercise their option” and purchase the property at a price that was agreed upon when they rented the property.". This strategy is immensely popular with investors to sell their properties, and is a very good way to sell in a tough market, and a great way for a "tenant/buyer to accumulate credit towards a down payment." The caveat here, as always: "Buyers should have their lease and option agreement reviewed by a competent attorney to insure that the deal is structured properly.

   Some other ways include: “Subject-to the existing mortgage”, where the buyer takes over the payments on the sellers existing mortgage “Hard Money” loans, which are short-term (and expensive) loans made on a property in need of repairs. “Seller Financing”, which is preferable to a seller vs. renting, and works great when the seller has a lot of equity and is perhaps unable to sell.

   Some great financing ideas have been raised here for you. Perhaps you already know about them, but if they are new concepts for you, I hope that you can use them in your Real Estate Investing endeavors (of course, after you do your homework and have your attorney review your plans and contracts). Do you have any to add to this list?

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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: #RealEstateGuru #RealEstateInvesting #creativerealestate #financingahome #traditionalloan #FHA #VA #leaseoption #renttoown #subjectto #hardmoney #sellerfinance

March 15, 2012

Buy-to-Let Deals Are Fast-Tracking UK Recovery

Hi Folks,
   Glad to be here with you.

   Today, we are going to talk "Buy-To-Let". What is "Buy-to-Let"? It's a very popular type of Real Estate Investment in the United Kingdom (the "UK"), where a property is purchased solely for the purpose of renting it out. This is similar to our version, which is a non-owner-occupied property (which oftentimes can refer to "Rent to Own"). So, now that we tied this in with some familiar terms from this side of the Pond, let's discuss how popular this investment has become.

   "For many buy-to-let looks an attractive income investment in a time of low rates and stock market volatility. Lower house prices, rising rents and improving mortgage deals are tempting investors once more", says Simon Lambert in his article, "Ten tips for buy-to-let". We will return to his tips shortly.

   In terms of had figures, David Whittaker, managing director of buy-to-let specialist Mortgages For Business, recently commented in an article ("Buy-to-let lending 'propping up' mortgage market") on the UKs' LandlordToday website, and said that that the increases in both new mortgage and remortgage approvals could have been largely driven by property investors. "Whilst buy-to-let lending to individuals has been lumped in with the total figures, we all know that it’s most likely the professional investors who are making hay while the sun shines", says Whittaker, who adds that "the likelihood is that the lending market is being propped up by the residential investment sector particularly with so much uncertainty surrounding the economy and first-time buyers largely locked out the of market.”

   In the same article, David Brown, commercial director of LSL Property Services, agreed, and commented that "demand for buy-to-let has been a key driving force behind the improved lending picture".

   Not just for Real Estate Investors

   This surge in Buy-to-Let is not isolated to just the Real Estate Investors. In a different, yet aptly titled article on the same UK LandlordToday website ("Build to rent is 'next big thing', says UK's biggest landlord"), it stated that "Developers are to be encouraged to build new housing estates where all the properties will be for rent, not sale". The article says that this would "mark a fundamental shift in the structure of the UK housing market", and that "Institutions and property companies would own, and trade, these ‘build to rent’ developments". The idea has been floated after research by Grainger, the country’s largest listed residential landlord, highlighted the huge shift in public opinion over home ownership versus renting, and the Grainger chief executive, Andrew Cunningham, was quoted in the same article that "build to rent will be the ‘next big thing’".

   Now, back to those 10 tips from the article written by Lambert, to which he refers as "the ten essential things to consider for a successful buy-to-let investment". The list includes the following; Research the market, Choose a promising area, Do the math, Shop around, Think about your target tenant, Don't be over ambitious, Consider looking further afield, Haggle over price, Know the pitfalls, Consider how hands-on you want to be. Great tips!

   This is a big thing in the UK. One of the LandlordToday articles stated that "The Government is taking the issue seriously, looking at how to encourage Real Estate Investment Trusts (REITs) in the residential sector". This is sure to deepen the market for Buy-to-Let in the UK, and the demand for Buy-to-Let in the UK should only continue to increase.

   What do you think this means for the United States? Should we be pushing the Fed to get more involved in this? It looks like they are on the right path when discussing doing something similar with the Foreclosure homes and REOs. What are your thoughts?


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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: #buytolet #realestateinvestment #UK #foreclosure #REO #renttoown #risingrents #residential #mortgagemarket #London #England #buildtorent #developer

January 31, 2012

Use A Mortgage, Rent It, Or Use Other Options

Hi Folks,
   Thanks for joining me here. I am so glad to write for you! OK, I promise not to corny.

   Over and over we hear that it is tough to get a mortgage. If you can't get a mortgage, what are some other options. What if you want a home, but don't want a mortgage?

   "It’s getting more and more difficult to qualify for a traditional mortgage", writes CA Hagy in an article titled, "Three Alternatives to a Traditional Mortgage". What are some reasons why you might be declined? Hagy names a few possible reasons, i.e. a foreclosure in your past, inability to prove a "decent cash flow", and self employment resulting in "irregular income?".

   If you fall into one of the categories mentioned above, you're not alone. Hady points out a few mortgage alternatives that might help you meet your goal(s).

   One option is to go the route of "Seller Financing", in which the "current homeowner offers to sell you the house", and you make payments to them but "they continue to hold the note until you have paid off the home". Hagy says that for a homeowner that cannot find buyers due to the tight lending situation. Seller Financing may be a "feasible option". The seller basically becomes the lender, and an agreement is drawn up with the full details of the transaction.

   "Borrowing from a Self-Directed IRA", writes Nagy, is "typically designed for investors who want to buy a home but don’t have the upfront cash to make it happen". As defined in the article by Nagy, "A self-directed IRA is somewhat like a Roth IRA or a traditional IRA", however, it's more flexible, For example, the IRA can invest in real estate, etc, but the "main catch", as Nagy calls it, that the IRS "does not allow you to use your own account or the account of a relative or business partner", thus, you "cannot use your own self-directed IRA to purchase a home. But you can use the money from another person’s self-directed IRA if they are not related to you". Confused? Nagy says that there are many investors "who will allow buyers to use money from their self-directed IRAs as an investment deal", and the investor would "own an interest in the property", or, the investor can simply "loan the money like a regular mortgage".

   The other option, "Leasing or Rent to Own", is something you might be quite familiar with, especially if you are a frequent visitor on our website. In a nutshell, the buyer can rent a home before actually purchasing it. The rent to own arrangement, which is also referred to as lease to buy, lease to own or a lease option, is one in which the buyer has an option to buy the home at a specified price within a specified period of time. This option would also benefit a seller unable to find qualified buyers, and would certainly benefit buyers who need time to save for a down payment and to "improve their credit score", says Hagy.

   Let's stay on the topic of Renting and Owning for a moment.

   "Sometimes it is better to rent than to own", writes Leah Ingram, in her article, "Rent or Own a Home?", who admits that "in today's real estate market it's not surprising if people are a bit gun shy about buying or owning a home." and she provides 3 tips to help you decide on renting vs buying.

   Ask your self; Do you have documented income, a good credit history, and a steady income? These are some important items to have in order to buy a home, in the first of three tips, courtesy of Jessica Edwards of Coldwell Banker Real Estate, within the article from Ingram. Edwards adds that if your income is unreliable, "getting tied down to a mortgage may not make the most sense financially".

   The next tip is to make a "timeline" of how long you will stay in the home; if it's just for a couple of years, you are "less likely to see a significant financial return on your investment", says Edwards, and says that if you stay under 2 years and sell it, "you may find yourself having to pay capital gains taxes".

   "Crunch the numbers", says Edwards, in her third tip. Add up the mortgage payments real estate taxes, insurance payments, maintenance costs, etc. and compare these costs of ownership vs. the cost of renting (monthly rent and average utilities).

   Ingram says that "buying doesn't always make sense and neither does renting", and suggests speaking with a "real estate expert, your tax person, and a financial professional" before deciding to rent versus buy a home.

What are your thoughts? We'd love to hear.


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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: #traditionalmortgage #foreclosure #SellerFinancing #homeowner #SelfDirectedIRA #IRS #Tax #RealEstate #RenttoOwn #leasetobuy #leasetoown #leaseoption #capitalgains

January 17, 2012

From A Sad Foreclosure To A Happy Home

Hi Everyone,
   Hope you had a nice long weekend if you had yesterday off, and a belated tip-of-the-cap to Dr. Martin Luther King for the peaceful way that he traveled to bring equal rights to African-Americans, and to bring peace amongst the different races of people on our little planet.

   Back in late summer, I wrote a post titled, "Feds Finally Keen on Rent to Own Housing", where we discussed a possible Government program aimed at selling bundles of foreclosed homes owned by Fannie Mae (FNMA) and Freddie Mac (FMCC), to real estate investors, with the properties converted into rentals. The key point here is that these homes will be sold in bulk vs. individually.

   Fast Forward a few months, and the Government is hoping to "launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties", in a story by Tami Luhby for CNN Money. Just last week, Federal Reserve Chairman Ben Bernanke cited the program as a possible way to help us get through the housing crisis, and per the article by Luhby, titled, "Turning foreclosures into rentals", Bernanke said that "Restoring the health of the housing market is a necessary part of a broader strategy for economic recovery".

   After dropping mortgage rates down to historic lows, the Fed started thinking "outside of the box", and needed to find creative ways to solve the crisis. Perhaps after a prolonged stall in foreclosure procedures, the Fed sees the wave of foreclosures coming in their crystal ball, and as Luhby writes, there are close to 2 million homes in the late stages of delinquency, according to Lender Processing Services. These foreclosed properties can destroy home prices since they "often sell below market value", says Luhby.

   By converting these homes to rentals, the neighbors are happy, the Fed is happy, and things can start looking better for everyone. What are your thoughts?

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TAGS: #MLK #MartinLutherKing #AfricanAmerican #RenttoOwn #FannieMae #FNMA #FreddieMac #FMCC #realestateinvestors #FederalReserve #foreclosedproperties #homeprices

December 19, 2011

How The Heck Did I Become A Landlord?

Hi Folks,
   Hope all is well, and your Holiday spirit is brimming over the top!
   OK, I certainly agree, the title of this post may be silly, but the topic is anything but silly.

   Amy Hoak did a great job addressing the "Accidental Landlords" in her story for the WSJ. Hoak defined one such landlord as "a landlord not by choice but because of circumstances beyond control", namely, the real-estate crash, in which this particular homeowner was suddenly faced with a choice: "sell for $100,000 less than what she paid, or hold on and hope that prices recover." She chose to hold on, rent the property, and thus, became an "Accidental Landlord". The chaos that ensued was a nightmare, that was harassing neighbors, and made complaints about everything from loud music to dust on her mailbox.

   "Becoming a landlord when a property proves difficult to sell is also a gamble that housing prices will rebound fairly soon, and that the ultimate sale price will more than cover expenses incurred in the meantime.", says Hoak, but with that gamble also comes legal responsibilities, expenses, and "unforeseen headaches"

   Lisa Eckert, a property manager for Coldwell Banker Bain, in Kirkland, Wash, commented in Hoak's article that she thinks we will see "a lot more owners becoming landlords" due to the economy, and says that people are "turning to renting out as the last-ditch effort". For example, Rick Sharga, executive vice president of Santa Ana, Calif.-based Carrington Mortgage Holdings LLC, says that rents are rising and there are millions of potential home buyers who are unable to qualify for mortgages.

   If you find yourself at the threshold of becoming an "Accidental Landlord", there are some tips that were shared that can help you survive, such as high costs (such as taxes, insurance, possible homeowner association dues, maintenance, etc.). For some landlords, Hoak writes that they might be better off hiring a Property Manager. Basically, a Project Manager, who will handle the maintenance, along with collecting the rent and other related services to managing the property, all for a fee that varies regionally and locally.

   Some of the additional tips that will help both new and seasoned landlords survive, include having a strong and enforceable contract, as well as full documentation of all correspondence, expenses, etc, should they ever need paperwork to bolster the reason for an eviction.

   My favorite quote from Hoak's piece came from Jerry Arnold, who has been renting out a condo he owns in Seattle since 2009, and he said the following about renters; "Nobody treats a property like an owner".

   Mr. Arnold, you are correct. However, there is one other group of people out there that also will treat a property like an owner; tenant-buyers, who are signed on to a Rent to Own contract. Basically, why just rent out a home that you can't sell? Why not rent it out with an option to buy, or Rent to Own?

   Does that make sense? What do you think about that statement?

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TAGS: #landlord #realestatecrash #rentproperty #risingrent #housingprices #PropertyManager #eviction #RenttoOwn #contract #renter #tenant

December 5, 2011

Property Managers Thrive as Rentals Soar

Hi Folks,

   Hope you all had a great weekend, whether you were doing Holiday shopping or anything else to relax this past weekend.

   For quite some time, many honest and hard working Property Managers were being grouped into the same category as some bad apples in their field. However, since people are having difficulties purchasing homes due to mortgage rules, etc, rentals are soaring, and in conjunction, Property Managers are flourishing.

   If you are not sure of what the functions of a Rental Property Manager are, they "handle such tasks as screening tenants, helping landlords set rents, resolving disputes and ensuring lawns get mowed. They charge homeowners about 8 percent to 14 percent of the monthly rent, depending on the manager and city", as told by Hui-yong Yu on businessweek.com.

   Time for some hard facts from Yu in the article, "Once ‘Ugly’ Property Management Grows as U.S. Home Rentals Surge", Renter household formation "surpassed new owner-occupied homes in 2007 for the first time since 1985 and has held the lead since", per the U.S. Census Bureau data". Additionally, U.S. apartment vacancies fell to a five-year low in the third quarter, according to Reis Inc., a New York-based real estate research company. Supply and Demand - less vacancies means less apartments available, and thus, higher rents. Diane Castanes, a partner at Phillips Real Estate Services in Seattle, mentioned that “When rents go up, that gives people enough cash flow to hire professional management,”

   “There has been a dramatic shift toward renting,” Chris Herbert, research director of Harvard University’s Joint Center for Housing Studies, and as Yu said, services for rental properties are thriving "following a surge in foreclosures and stiffening of mortgage standards". This led to an explosion in membership in the National Association of Residential Property Managers over the past five years, according to the Chesapeake, Virginia-based trade group".

   This is where this story becomes extremely interesting.

   "Property management may have a role to play in fixing the housing crisis", said Reggie Brown, chief executive officer of All Property Management LLC, a Seattle-based Web service, in a segment of Yu's article. A few months back, the FHFA, which regulates Fannie Mae and Freddie Mac, was looking for ideas on "handling foreclosed homes held by the government", to the tune of about 248,000 as of June.

   Brown "filed a suggestion with the FHFA that the homes be put up for rent with property managers hired to oversee them", which was a fantastic idea. "What’s going to change is the percentage of U.S. households that are rental versus owner-occupied,” he said. “It’s now almost 40 percent, but that number is definitely going to grow.”

   From our standpoint, this is a great idea on many levels. With the proposal from Brown, coupled with our proposal to Rent to Own these homes (to generate immediate revenue), I definitely feel this would make a large impact on the Housing Market.

What are your thoughts on this?

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TAGS: #PropertyManager #rentalproperties #foreclosures #RenttoOwn #screeningtenants #homeowners #owneroccupiedhomes #apartmentvacancies #FHFA #Rentals #mortgagerules

October 6, 2011

Real Estate Investing - Angles and Analysis

Good Morning,
   How is everyone doing this morning? Fine, I hope!

   Where do I even start in terms of this topic? It is such a broad topic, and if you ask 10 different people, you might wind up with 10 different answers and multiple opinions.

   Let's look at some of the angles of Real Estate Investing. Basically, the bottom line is that you purchase a property, hold on to it in hopes that the price will appreciate (possibly renting it out while you wait to recoup all or part of your monthly payments), or, you purchase a property and "flip" it, which means buying and selling a property quickly for a profit.

   Where can you find properties? Foreclosures have spiked, and the homes that are foreclosed upon are often sold on the steps of the local courthouse (depending on where you are). The problem here is that these are very risky investments. In a story written by Veronica Chufo on the DailyPress.com ("Real estate investing: Is now the time to buy?"), some investors and real estate agents weighed in on the process and the risks involved.

   In the article by Chufo, Greg Hatcher, an investor and real estate agent with EZ-Vest Realty, pointed to the fact that a majority of these homes are "underwater" (the value of the home is less than the outstanding mortgage). This means that it would not be a good investment, says Hatcher. There is also the potential for liens on the property, says Hatcher, which would need to examined via a Title Search. One other risk Hatcher mentions, which is probably one that we are all quite familiar with when discussing foreclosures; "an investor can't see inside the house, let alone have an inspection, as a traditional buyer could". In sum, Hatcher says that we would only recommend this to very experienced investors and those that "have cash that they can afford to chance".

   A Less-Risky ("safer?") route is to find sellers that must sell, but do have home equity. Hatcher says that real estate agents could be very helpful in your search.

   When you find an investment property and you're ready to purchase it, it's time to think about financing. Hatcher says that investors often must have a larger down payment (of about 20 percent), and that they also need money "in reserves and cash for upgrades and closing costs". He said that with lenders, "The theme would be cash is king", since they look for buyers who have liquid funds (lines of credit, cash in the bank, money available in 401(k)s or IRAs, per Hatcher).

   What you do with the property boils down to the local market, financing, and your own desires. The typical decision is "Flip or Rent", and this is analyzed by Chufo. Flipping was popular during the Real Estate boom, but has slowed down dramatically, because the "buyer pool has shrunk because lending requirements are stricter", writes Chufo.

   The other flavor is buying a home and renting it out (and sell them when the market rebounds). Other buyers, as Chufo refers to them, are "keep and hold" investors (they will act as landlords by renting the properties instead of reselling them). Patti Robertson, a HomeVestors franchisee in Norfolk and president of the Tidewater Real Estate Investors Group, adds that investors are getting "more rental income now than ever before", and she points to higher rental payments vs. lower housing costs. Specifically, she said, "Rents more than cover mortgage payments", and provides "instant cash flow". Of course, it would be a disservice not to mention Rent to Own, in which the home is rented out with an option to buy at a predetermined price during a specific term, i.e. 12-months, 24-months, etc. (Learn More on Rent to Own Homes Here).

   To determine rent/hold or flip, Hatcher says that a real estate agent would need to conduct a "market analysis on comparable properties", and a post-rehab value of 75-80% of market value would be favorable to a keep-and-hold investor, but he says that a "flipper" would need a property at a market value (post-rehab) of about 60%.

   Investors are still out there scouting for deals, says Chufo. Hatcher suggests that new investors should try to joint venture or partner with more seasoned investors, and can network with other investors via a Real Estate Investors Association (an REIA). One investor, Maryann Krzywicki, has done her homework, and found a business partner. She feels it's a good time to invest, "because it's a buyer's market". Chufo also quotes Patti Robertson (an investor for over 4 years), who is also positive on Real Estate Investing, and says that, "Most people have their money in the stock market right now earning zero, or in the bank earning half a percent. Real estate is on the bottom. It has to go up," she said.

   Are you a Real Estate Investor? Are you a potential Real Estate Investor? What is your experience with the Real Estate Market? Please pass along any tips to our friends that are reading this article.

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Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
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TAGS: #RealEstateInvesting #foreclosure #fliphomes #renttoown #underwatermortgage #financing #renting #lending #landlord #keepandhold

September 11, 2011

Feds Finally Keen on Rent to Own Housing

Good Morning Friends,

   I'm glad to have you back another week to examine the Real Estate Market, look at some options that are open to you as a buyer or a seller, and to interpret the moves that the Government is making toward improving the Housing Market and the Economy.

   Today, we are actually going to hit all 3 of the above points in one Blog Post, and some of this information will surprise you!

   For quite some time, Rhode Island Senator Jack Reed has been, "calling on Fannie Mae and Freddie Mac to rent out their massive, 250,000-strong inventory of foreclosed homes in order to 'shrink the inventory of government-owned homes'", as Carol VanSickle points out in her story ("Federal Rental Program Update: White House Supports Rental Program"). Reed believes that by the Government taking on a landlord role, it would help "diminish the glut of foreclosures".

   According to Federal Reserve Chairman Ben Bernanke, per a recent article by Christina M Johnson ("Rent To Own - Forecast Bright As Home Sales Continue To Be Gloomy"), he believes the U.S. Housing Market is a strong factor that is hurting the broader economy, and believes that the massive amount of foreclosures selling below cost are "one of our country's biggest economic drains".

   Johnson, who was been privately buying and selling homes for 20 years, says that as we have seen, "foreclosures offered at below market pricing forces all housing prices to continue downward", and that this is one never ending cycle. Exacerbating this are the lending restrictions (lowering the bar on potential buyers), along with decreasing home prices. Johnson fears that we could become a nation of renters with only the "rich few as the exclusive property owners", and she cites data from Realty Trac, Inc. and CoreLogic that estimates millions of homes either in foreclosure or very close to going into foreclosure...currently!

   The following question was raised by Johnson; "Could the rent to own home sale market help pull the U.S. out of its economic slump?". Could the Government acting as a landlord help us? As VanSickle writes, "Previously, the idea of a landlord-government has been met with strong resistance."

   The "Winds of Change"...

   "Reed finally has some real support in the form of a call to action from the White House", says VanSickle, and says that the Obama administration has announced that "the government-controlled GSEs should partner with private investors in order to make Reed’s proposed rental program a reality", and the president said that the administration is “soliciting ideas” on how to put Reid’s concept into action. In an article titled, "Feds seek ideas on renting government-owned foreclosed homes" on the Seattle Times Website, Officials from the Obama administration and the Federal Housing Finance Agency (oversees Fannie Mae and Freddie Mac), said they hoped for innovative solutions to the "severe oversupply of single-family homes".

   The Seattle Times story says that Federal officials are "seeking ideas from investors and others about how to rent some of the nearly 250,000 foreclosed homes owned by government-backed entities such as Fannie Mae". VanSickle writes that the end goal is to "“turn the federal government’s inventory of foreclosed houses into rental properties that could be managed by private enterprises or sold in bulk”, and Johnson writes that Government incentives would "generate even more interest from other professionals related to the home sales industry, offering their help and expertise to help facilitate a successful rent to own transaction". This would, in turn, help the related fields and related services that are depending on Housing to get back on it's feet.

   U.S. Treasury Secretary Timothy Geithner recently said that they are "Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets and support neighborhood and home-price stability", as Louis Aguilar writes in The Detroit News story, "Feds aim to revive Michigan's foreclosed homes".

   Aguilar writes that among the strategies on which agencies are "seeking comment" are rent-to-own programs and "ways the properties can be used to support affordable housing". He adds that the program might have a "big impact on Michigan", which, as per the U.S. Housing and Urban Development, or "HUD", ranks fifth in the nation for foreclosed properties (There is a new foreclosure properties website called the "REO PORTAL" located on the Huduser website). Along with Aguilar, both the Seattle Times story, as well as Johnson's story, both mention Rent to Own as an option gaining popularity.

   Johnson says that if the Government encourages private Rent to Own purchases via "tax breaks and financial incentives", this will reduce the amount of homes in foreclosure (and lower inventory), will stabilize prices, and would add a layer of "privatized protection". She said that the risks must also be addressed, such as potential property damage and costly evictions. Two of the most important points, however, are ensuring that the Buyer is working with someone to fix their credit (so they can actually buy the home at the end of the lease period), and on the flip side, making sure the Seller is current and does not have existing liens or a pending foreclosure on the actual home!

   In order to counter the lack of an outright sales commission due to a Real Estate Agent or Broker at the successful completion of an outright sale, Johnson has a suggestion; Real Estate Agents and Brokers could expand their services to property management, collecting the monthly rent, etc. Of course, each one of these would need to be cleared with the local Real Estate Board and also not cross over any fine lines drawn by RESPA or other Federal agencies.

   "Action on the issue might take a while", says the Seattle Times story, and says that the HUD and the FHFA announced a "request for information" that is open to all interested parties (Aguilar points to the FHFA website, where potential investors can click on "Request for Information: REO Asset Disposition"). The deadline for information requests is Sept. 15, so act fast !

   My thoughts? I've been servicing Rent to Own for over 9 years and watching how it helps buyers and sellers...but I pose the following question; "Why did it take the Government so long to open their eyes to this option?" Do you have any ideas to share on this?

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Rob Eisenstein
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TAGS: #FHFA #foreclosure #renttoown #Obama #Government #rentalprogram #HUD #RealEstate #FannieMae #FreddieMac

September 4, 2011

Far-Reaching Impact of the HST on Canadian Real Estate

Hi Everyone,

   Happy Labor Day to you and your family. I hope you are resting and relaxing with your family and friends and enjoying some quality time together.

   As you all may know, our website and our company are headquartered in New York, but we cover the entire globe in terms of Rent to Own deals. After the United States market, the second largest market for Rent to Own deals is in Canada. As a matter of fact, just to let you know how large that market is, last summer I was interviewed for the esteemed "Canadian Real Estate Magazine" for a story on Rent to Own in Canada (FULL ARTICLE HERE). Apart from those that reside within Canada, there are also a substantial number of buyers and sellers of Canadian Real Estate that reside in the United States. Some of these buyers and sellers are Real Estate Investors with offices in Canada, so I felt it important to discuss a hot-button topic of our northern neighbors; the Harmonized Sales Tax, or "HST", for short.

   According to the website hstincanada, the HST is the "combination of Provincial Sales Tax (PST) and Goods and Services Tax (GST) into one unified tax", and in the Spring of 1997, New Brunswick, Newfoundland and Nova Scotia implemented a 15% HST (which has dropped slightly since then). However, despite the relative uniformity, the HST is not as cut and dry as it may seem, and as mentioned on the same website, some reports have shown that "implementing HST in the eastern provinces caused consumer prices to fall". Canada is a large country with multiple Provinces with diverse industries and requirements, and not all of the provinces favor the HST. The HST Controversy Hot-Spot is British Columbia (referred to commonly as "BC).

   Just last month, 55% of voters in BC elected to reject the HST, per a story titled "HST is Officially Defeated in BC" on hstincanada. What happens next? The former taxation system will be reinstated, but this will be quite expensive, costing an estimated $3 billion to repay "transitional funding" to Ottawa and to also bring back the administrative structure to process the PST. As is the case in every country, that money will be recouped by trimming some programs and adding new taxes.

   In regards to the relationship between the HST and the Real Estate market, let's review some background on the HST as it applies to the Real Estate Industry in Canada (Building and Construction, Realtors, Renovations, Existing Homes, etc.), since this will help paint a very clear picture of which ones are impacted by the HST.

   Earlier this year, Canada added some new mortgage rules, to stabilize high ratio mortgages and decreasing household debt, per the hstincanada article titled, "HST Impact on Housing Market". These new rules raised concerns over the affordability of housing, due to "two-punch combo of HST and regulations", as it was referred to in the article.

   The first punch of the of the "two-punch combo" - The mortgage rules translate into higher income requirements for buyers for higher ratio mortgages, and thus, higher monthly payments.

   Punch #2 - The HST, which is applied to the purchase of new homes (new homes, not existing homes), and is applied to "any amount over $400,000 with a rebate of up to $20,000", per hstincanada, and is also applied to "any legal fees, closing costs, and processing fees associated with buying a new home", as well as realtor fees and home inspections.

   In an article written by Sally MacDonald for the Daily Townsman ("HST vote a blow for real estate"), BC Realtor Jason Wheeldon points out the HST is "not applicable to existing housing", but says that "there is a lot of the market out there that believe that even if they buy a house that's two years old, they are going to be subject to HST, and there isn't any. It's only on new homes offered by the developer or the builder".

   Apparently, as told by hstincanada, the "added tax has been reportedly stalling new home projects and causing a decrease in the purchase of new homes in both Ontario and BC", and evidently, in the article by MacDonald, this has translated into confusion, says Wheeldon. He goes further and says that "market confusion" could stall the real estate market while the province reverts back to the PST. "I think people are going to review their big spending decisions and see if they are going to hold off for 18 months".

   It is important to note that from MacDonald's article, we are reminded that Real Estate is exempt under PST as well as the HST, and that the "return to the PST in 2013 will be positive for out-of-province homeowners", as per Wheeldon. He said that when it restores back, "it will benefit home owners, particularly recreational real estate. Recreational buyers were subject to the full HST with no rebates whatsoever".

   From the angle of Housing Construction, MacDonald's article says that housing construction will suffer a blow over the next 18 months, and that the cost of labor (i.e. home renovations), will get hit with the full 12% HST (but not the 7% PST). Also, in the same story, Peter Simpson of the Greater Vancouver Home Builders' Association expects consumers will delay renovation projects until the PST is back in place (very similar to what Wheeldon mentioned above). Simpson recommends a system that "makes it neutral whether you do it now or wait".

   Things do not look much better from the perspective of foreign investment, as hstincanada points out that in BC, it is still a concern that "foreign investment will be lost and businesses will see a rise in expenses with the former taxation system reinstated which in turn will translate into higher consumer costs". To balance this out, they are hoping for the "supposed influx of provincial investments to balance out the economy".

   Are you either a buyer or seller of Canadian Real Estate or Real Estate in British Columbia? If you are, I would love to hear your "inside scoop" on what is really going on up there and what people are thinking. Even if you are a foreign Real Estate Investor and you buy homes in Canada, your insight would be incredibly helpful here.


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Rob Eisenstein
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TAGS: #HST #Canada #CanadianRealEstate #RealEstateInvestor #BritishColumbia #BuyHomesCanada #RenttoOwn

August 29, 2011

Rent, Own, or the Hybrid of Rent to Own?

Hi Folks,
   Welcome back, and I hope all of you made it safely through Hurricane Irene, and ironically, this weekend was the 6-Year anniversary of Hurricane Katrina. I am still without power, as I post this from a laptop with draining power and through my wireless Droid hotspot. But...the show must go on...

   Oftentimes, when people are renting a home, they get to a point where they realize that they are paying their landlord's mortgage, putting the landlord's kids through college, or any of a million other ways to spin it. But with the complete change in the "norm" that has taken place over the last few years, these thoughts need to be seriously weighed in light of many other factors.

   David Getson, a Realtor with Coldwell Banker Residential in the District of Columbia, was recently quoted in a story by Michele Lerner ("Rent-vs.-own equation changing"), and said that the decision to buy a home vs. rent a home is, “Usually this is an emotional decision rather than a financial one, based on their desire for a dog, to start a family, to put down roots or just to have the ability to paint their walls whatever color they want.”

   Lerner writes that the decision to move from renter to homeowner was "simpler in 2005 for two reasons", which she points to as the "trajectory" of real estate prices that made buyers "comfortable that the property purchase would be a good investment", coupled with the fact that mortgage lenders "made it easy for buyers to qualify, even if they lacked cash and had yet to demonstrate a pattern of creditworthiness." However, she writes, the decision nowadays required "more measured thinking about the emotional impact and the financial implications of purchasing a home."

   Getson advises that potential buyers must look at their lifestyle today and the lifestyle they expect to have in 5+ years. In the same story, Bennett Whitlock, a financial adviser and managing director of Whitlock and Associates in Lake Ridge, Va., said, "becoming a homeowner should be part of an overall financial plan rather than a simple rent-versus-own decision."

   Lerner says that instead of contacting a Realtor as a first step (as most potential buyers do), they really should visit a lender and estimate how much they can borrow. Mark Goldstein, president of Capitol Funding in Rockville, adds that some important factors are Job Security, the amount of time the buyers plan to stay in the home, and suggests that buyers should assume 5+ years in the home to recoup costs and see appreciation (similar to the comments of Getson).

   Financially, Getson says that buyers today, "seem to recognize that their comfort level with the monthly payment is more important than borrowing as much as they are approved for". With that in mind, Whitlock suggests to avoid spending more than 33% of your gross monthly income on housing costs. As for a security cushion to cover home maintenance and repairs, Goldstein recommends that you keep some cash reserves on hand.

   Goldstein suggests that one way he advises buyers to prepare for homeownership is to, "take the difference between their current rent and their prospective mortgage payment and put that money in a savings account each month”, and adds that this helps the prospective buyer "get used to the monthly payment and make sure they are comfortable with it, rather than finding out six months after they bought a house that they are paying too much for their mortgage". Definitely a fantastic idea!

   Rent or Own? Decisions, Decisions...! How about the best of both worlds...Rent to Own? Great idea? Yes, I know...shameful promotion time...Rent to Own Homes via our website (HomeRun Homes). OK, sometimes we plug the site...the idea is not to abuse it !

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Regards,
Rob Eisenstein
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TAGS: #landlord #mortgage #realtor #renter #homeowner #lender #renttoown


August 9, 2011

Really? They Are Doing THAT To Foreclosures?

Hi Folks,
   Happy Wednesday to you.

   As some of you may be aware, when a person cannot afford their home, it's very easy for late payments to start accruing, and the bank letters come, and all of those other ugly things.

   Before that, a homeowner can try and bring their mortgage current, do a Rent to Own, along with a few other salvage techniques. Ultimately, they may decide to short sale the home, if the price of the home is less than the outstanding mortgage(s). Additionally, they can walk away, and the home will ultimately go into foreclosure. At this point, it remains on the bank's balance sheet as an REO (Real Estate Owned), and the bank uses agents to try and sell the homes to recoup something to cover the losses.

   But this raises the question...what about the "Orphans"...the homes that won't even sell at substantial discounts. What do the banks do with these homes? Bulldoze them!

   "Increasingly, it appears banks are turning to demolition teams instead of Realtors to rid them of their least valuable repossessed homes", which comes from an article aptly titled, "Bulldoze: The New Way To Foreclose", written by Stephen Gandel for Time.com. As Gandel writes, "There are nearly 1.7 million homes in the U.S. in some state of foreclosure.". Now, with the market laws of supply and demand, if there are too many homes on market, prices stay low. Gandel poses the question, "But what if some of those homes never hit the market."? This could be good for the market.

   Just recently, per the article, Bank of America (BofA) announced "plans to demolish 100 foreclosed homes in the Cleveland area.", and most of there homes, according to a BofA spokesman, are "worth less than $10,000". How many so far? Approximately 100 in Detroit, 150 in Chicago, and more cities slated by end of year. It's not just BofA...Fannie Mae, Wells Fargo, and JPMorgan Chase were also mentioned.

   Why is this good? Who does this help?

   It's good for the banks since they no longer need to pay tax and upkeep, writes Gandel. They might even get a write-off for the donations.

   It's good for the local governments since they have the land donated back to them, and they get to develop it or use it as open space,

   The story says that "Housing economists like these deals because they remove homes from the market that would otherwise sell for a low price or not at all", which would drop prices (supply/demand).

   Gandel writes; "we are at the point where banks would be better off knocking down houses that reselling them", and adds that this shows there is "still something very wrong with the housing market." I find it very encouraging that banks are thinking outside the box to stir things up. What do you think?


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Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #REO #foreclosure #shortsale #renttoown #repossessedhomes #mortgage


July 31, 2011

Rent to Own, The Good vs. The Ugly

Hi Folks,

   Welcome back to our first post of AUGUST !
   WOW...you can almost feel the snow that's on it's way in the next few months.

   9 years of living and breathing Rent to Own, and can I share this with you? I have never seen such publicity regarding Rent to Own as I have seen over the past few months ! Most of it is good and promising, but there are always vultures and bad apples out there looking to take advantage of buyers and/or sellers in desperate situations.

   Let us take a look at the "BAD" (and the "Ugly").

   In a recent Press Release on Media-newswire.com, titled, "A Georgia man was sentenced to nearly six years in prison for his role in a mortgage fraud conspiracy", as the story says, a person from Georgia was allegedly involved in a scam involving "dozens of properties and $7.5 million in loans", as per Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

   The scam went as follows, per the article: the individual, "informed the straw buyers/investors that after he purchased these properties in their names, he would enter into a “rent-to-own” agreement with one of the individuals from the community with poor credit in order to help that individual improve his/her credit score by renting the property for a year.", and additionally, he "represented to the straw buyers/investors that he would collect the rent from these individuals as tenants in the properties, pay the mortgages and taxes for the properties, and maintain the properties for the straw buyers/investors for approximately a year, at the end of which time he would sell the property to the tenant after his/her credit score improved and the property would be transferred out of the straw buyer’s/investor’s name, according to court documents."

   Unfortunately, he "did not assist any individuals with poor credit, nor did he enter into any “rent-to-own” agreements.", but instead, he "conspired with" loan officers, "to prepare and submit fraudulent mortgage loan applications to various mortgage lenders knowing that they contained false information with regard to the straw buyers/investors in order to secure mortgage loans on the 48 properties, according to court documents.". Ultimately, he was sentenced to 69 months in prison.

   Now, that is the only negative story on my radar the past few months, aside from a Foreclosure Scam we discussed in a previous Blog Post ("Foreclosure Scam Alert Based On Phony Deeds")

   For the most part, Rent to Own has been represented in the Media as an opportunity for buyers, sellers, as well as entire Housing Markets and Nations to rebuild and prosper. With that, let us examine these positive stories (the "GOOD").

   Rent to Own has always been an important strategy to pull buyers with less than perfect credit into the market, as well as sellers who are stuck in a home or multiple homes. A recent story in the Milwaukee Journal Sentinel titled, "Condo Living: Income Property", discussed a company in Milwaukee (Milwaukee Apartment Finders) that "offers its clients a rent-to-own option, which allows tenants who make an additional down payment when they sign the lease to apply a percentage of their rent to the purchase price of the condo unit.", which is a Rent to Own agreement. The story adds that at the end of the lease, "which is typically 12 months, tenants can opt to buy the unit or forfeit the down payment to the condo owner."

   Additionally, in a story by Luis Hernandez for the Visalia Times ("47-unit housing project OK'd by Tulare Planning Commission"), the story discusses the approval by the "Tulare Planning Commission" of a design for Aspen Court, "a 47-unit affordable-housing project in east Tulare — the first such development to receive city approval in several years." In the story, Consultant Tim Sciacqua (representing Kaweah Management), is quoted as saying that "Tule Vista, a rent-to-own single family housing project on E Street north of Bardsley Avenue, has 10 units ready to be rented out. The second project, Trails West at Cross Avenue and West Street, is about 10 months away from completion. Framing for the houses is up."

   The good stretches outside of our borders, as well.

   In the United Arab Emirates (UAE), two recent stories discussed Rent to Own in the Oil-rich nation. "The introduction of rent-to-own schemes may boost demand" for projects in Abu Dhabi, Jones Lang LaSalle said in a report released this week, noting that it expected other developers to follow the Sorouh model". This quote comes from the story written for the National.ae, titled, "1000 homes to boost sluggish sales market", which offers hope in boosting the market in that country. In a second story for the UAE, written by Parag Deulgaonkar for Emirates247.com ("Rents in older Abu Dhabi buildings fall 15% in Q2. Second half to see higher handover; prices not to recover before 2012"), the story says that, "The introduction of rent-to-own schemes may boost demand, but only a limited number of developers offering this option.". Once again, a beacon of hope for increasing demand and stoking the market.

   Buying a Home, Selling a Home, Renting a Home, OR Renting-to-Own a Home. These all require careful review and due-diligence before signing on the dotted line. Do not rush your decision, regardless of how dire your situation, as you could find yourself worse-off by ten-fold. Consult your attorney, title company, etc. These are major life decisions...

   Looking for your comments on this topic......starting now...


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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: #renttoown #titlecompany #buyinghome #sellinghome #downpayment #UAE #mortgagefraud

July 19, 2011

It's Our Birthday ! HomeRun Homes Celebrates 9 Years of Rent to Own Homes

Hi Folks,
   I hope your week has been kind to you, or at least so far.

   OK, I'm happy and I want to share this with you...
   It's Our Birthday !

   We are celebrating 9 years of Rent to Own Homes this month.

   We are about to break the news, but here is your exclusive look at our Press Release hitting the wires this week:

For Immediate Release:
HomeRun Homes
(631) 678-5298
(631) 574-2420
http://www.lease2buy.com

Rent to Own Homes Mega-Site Celebrates Their 9th Anniversary

Ronkonkoma, New York, July 20, 2011 - HomeRun Homes (www.Lease2Buy.com) is proudly celebrating their 9th anniversary, and is announcing substantial strides toward their goal of bringing the Rent to Own Option into the mainstream of Real Estate Transactions.

Bringing Rent to Own Into The Mainstream

It has been a very busy and eventful year for HomeRun Homes. Over the course of the past year, the company has achieved the Government-mandated PCI DSS Web Security Compliance Certification, they were accepted into the prestigious Building Trades Association (BTA), and they announced a Strategic Alliance with business documents mega-site, U.S. Legal Forms. Additionally, the company started donating services to the Wounded Warrior Homes Non-Profit Organization.

Over the first part of this year, the company purchased the HomeRunHomes.com Domain Name to co-exist with their Lease2Buy.com Domain Name. The CEO & Founder of the company, Robert Eisenstein, began offering Public Speaking Appearances, and was quoted as summarizing the previous year as, "gigantic leaps forward in making Rent to Own an option that should always be on the table for both Buyers and Sellers".

Bigger Steps In the Coming Year

Eisenstein and HomeRun Homes are mapping out another powerful year, with some very helpful new projects on their agenda. Some of these projects include; making a mobile-version of the website (for Androids, IPhones, IPads, etc), adding additional payment options for customer convenience, creating a video tutorial series for the website, and creating a page devoted to the listings (Ads) RSS feeds from the website.

The company is also looking to add more countries to cover multiple different emerging markets (South Africa, China, Russia), and they hope to make further alliances with non-profit organizations to assist them in meeting their goals. Eisenstein forecasts that with the further integration of Rent to Own as an option to buy or sell a home, "it could even stoke the fires of recovery in some languishing regional housing markets".

For additional information on the topic, "Rent to Own Homes Mega-Site Celebrates Their 9th Anniversary", please visit http://www.Lease2Buy.com

ABOUT HOMERUN HOMES

Founded in 2002, HomeRun Homes is a Centralized Marketplace which helps people Buy or Sell a Rent to Own Home, a Commercial Property, or to offer Home Services nationwide and globally to the thriving Rent to Own market

- END -

   Summary: 9 years in the books. Lots of people in their new homes as a result of our website, and a lot of people have been able to crawl out from under their hefty mortgages as a result of our website. That's what keeps me going !

   I would love to hear your thoughts, comments, and opinions!


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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: #renttoown #RealEstate #HousingMarkets #homes #BuildingTrades #PCI #mobile #Android #Iphone #RSS #tutorial #speaking