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

January 5, 2011

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

January 3, 2011

Factors Influencing the Psychology of The Rent to Own Market

Hi Everyone,

   Welcome to 2011! I hope you all had a wonderful and safe Holiday weekend.

   A lot of factors are involved in the Rent to own Market, and the ripple effect from any of a number of housing market changes or economic changes can be far-reaching. Dale Siegel, who writes the excellent Blog titled, "Diaries of a Mad Mortgage Broker", had recently asked us to write an article about the psychology of the Rent to Own market, and since her Blog has such a great reputation, we just couldn't resist !

   The Article, which is titled, "The Top 5 Factors Influencing the Psychology of The Rent to Own Market in 2010", is in the most recent section of her Blog, so head on over to have a read. Hopefully, the article will get you to think outside of the box when it comes to analyzing the effect of different events on the Rent to Own niche of the Real Estate market.

   Do you have anything to add to this? What are your thoughts on the psychology of the Rent to own Market? How about the Real Estate Market in general? We'd love to hear from you !

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

December 31, 2010

Real Estate Resolutions for 2011

Good Morning,


   Well, we have made it through another year! The last post of the last month of the last day of the year. It seems so final, but only until the door opens on the New Year, and it is a new beginning.

   In keeping with the "new beginning" mode, we thought this would be a great time to present some resolutions from our peers, and here are what a few of them have told us about their resolutions:

   Gregg Goldsholl, an agent with Houlihan Lawrence brokerage in Larchmont, New York: Price every listing for today's market - not what the seller wants to get, Work smarter not harder. Make sure buyers have financing before going out, Continue to provide killer client service, Do the things that lead to success. There are no shortcuts.

   Kelsey Lane, a Realtor with Keller Williams Realty Silicon Valley: I am getting my green designation through the National Association of Realtors - that is only part of the resolution though. The other part is that I am going to educate sellers, as I am helping them get their homes ready to sell, that we should be using as many green remodeling techniques as possible (for example, no VOC paint, light fixtures that accommodate CFL's attractively, SmartStrand carpet made from corn, etc.)

   Leonard Baron, a San Diego State University Professor and Real Estate Investor: Buy some more properties in 2011 - I bought 8 in 2009/2010. Interest rates are very low, housing prices are very low, vacancy is very low, so investment returns on properties are very high. Anyone who wants to do real estate for the long term, and you should NEVER buy real estate for the short term, should be out there learning, understanding, and then buying property.

   A lot of my own personal and business resolutions are closely related to those listed above. What are your resolutions for the New Year? Do you have any that differ from what was listed in this article? Please share with us here, as we would love to know.

Wishing You a Happy, Healthy, and a Prosperous New Year !

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

December 29, 2010

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

December 27, 2010

Bring a Shovel...It's Getting Deep Out Here !

Good Morning,


   Welcome back, my friends ! Hope you had a joyous Christmas, if you celebrated the Holiday this past weekend. By the way, does anyone have a shovel? We are looking at about 2 feet of snow here in Metro NY...Ho Ho Ho !

   Since this tends to be one of the quietest weeks of the year, I hope you have time to reflect on the past year. Let's reflect today on some housing numbers that came out last week, and I think a visual breakdown will help you see where we've been and possibly where we are headed.

   Last week, the numbers were released for NAR Existing Home Sales, New Residential Sales, and FHFA Monthly House Price Index. Here is how things shaped up:

                                            Change From 10/10           Change From 11/09
NAR Existing Home Sales               +5.6%                                    -27.9%
New Residential Sales                     +5.5%                                    -21.2%

   The National Association of Realtors' Existing-Home Sales index (completed transactions including single-family, town homes, condominiums and co-ops) was up in November after bottoming out in July, and New Residential Sales (sales of new single-family houses) reflected similar numbers. Finally, the FHFA Monthly House Price Index (Federal Housing Finance Agency’s monthly House Price Index) showed that U.S. house prices rose almost 3/4 of a percent from September to October.

   We are certainly making strides, as 2010 draws to a close, but we are still well below where we were in 2009. It's going to take considerably more time to get things back up to a speed that is more comforting to the market, however, I think we're off to a good start.

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

December 22, 2010

Holiday Wishes From HomeRun Homes

Hi Everyone,

   Hope your week is going smoothly. At this time, you may very well have visions of sugar plums dancing in your head, so I will make this short and sweet today !

   I just want to take this time to thank you for being a dedicated reader of my blog, and to say that I truly and genuinely appreciate the time you have spent reading my observations, views, (and sometimes even my rants!), and further, I hope that you've learned a thing or two along the way. As always, you can always contact me in order to suggest any topics or issues for me to investigate, review, and post in this blog. I am ready, willing, and able to accommodate you, as always.

   This will be our last post until Monday 12/27, so to our friends that celebrate Christmas, I wish you the Merriest Christmas ever, from our family and our company to you and your family. May the season bring you peace, serenity, and joy.

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

December 20, 2010

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

December 17, 2010

Numbers, Numbers, and More Housing Numbers

Hi Everyone,


   It is Friday, and believe it or not, we are just one week away from Christmas, and two weeks from the start of a New Years. It's always an exciting time, since good change is on the way !

   As always, the wheels of our Government are grinding away, and the good folks monitoring the housing market have provided us with some new numbers for New Residential Construction, of which will take a quick look at today.

   As we know from the previous release of these numbers, and as noted in this blog, "New Residential Construction" is broken down into Building Permits, Housing Starts, and Housing Completions. Building Permits were mixed. Housing Starts were up for one segment since the last release, however, down from the same time last year. Finally, the biggest numbers came from the Housing Completions portion, or should I say, "lack of" Housing Completions, with privately-owned completions falling over 14% from October, and close to 40% from last year. That is one heck of a tumble !

   Next week, there are 4 more indicators being released, which are the Loan Performance Housing Price Index (Tue 12/21), NAR Existing Home Sales (Wed 12/22), FHFA Monthly House Price Index (Wed 12/22), and New Residential Sales (Thu 12/23), all of which will be make for a very interesting week.

   We aim to please !

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

December 15, 2010

Crazy Hazy Appraisal Madness

Hi Folks,
   Hope your week is coming along great, so far.

   Well, considering the fact that we put a man on the moon and that we have found cures to a vast amount of the illnesses that have plagued mankind, you would think we would have this appraisal thing licked by now, right? Well, not exactly !

   To bolster this argument, this morning, I read a story on Yahoo Finance about a couple that were looking to purchase a specific home, and who shelled out $1600 for 7 appraisals, each of which was different than the other...and some of them by substantial amounts. Ultimately, due to this fiasco, the couple wound up renting the home that they actually wanted to purchase, but could not due to the scattered and lower appraisal(s).

   Since a majority of the trades on the stock exchange are done via computer, isn't there a way to have a universally-accepted appraisal program that spits out a figure? Perhaps there can be 3 programs (as with credit scores/FICO), with a Low, Middle, and a High. In that case, lenders can choose to accept the middle price, an average, or some other computation. I realize that my Appraiser friends are turning bright red with anger, but it should be a system that is created, organized, and computed by Appraisers, and they would still need to go on-site to verify all features of the property.

   Please don't yell at me for this one...but I am a stickler for automating procedures to minimize variation and errors. What are your thoughts on this proposal?

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


Tags: #appraiser #appraisal #finance

December 13, 2010

Giving Back to Our Wounded Warriors

Hi Everyone,
   Hope you had a great weekend.

   As we all know, this is the season of giving, and today, we'd like to discuss a charity that we believe is worthy of your donations. The charity I am referring to is "Wounded Warrior Homes", and basically, the vision of this non-profit organization is to provide fully furnished homes (including sheets, towels, and the first 2 weeks of food), in which each military service member, "will rent a private room at below market rent and have the sense of ownership." In addition, the service member is connected with a case manager, along with "educational and job training options" and will, "begin working on their individual transition plan toward independence in 2 -2 1/2 years or less."

   Wounded Warrior Homes was started by Steve & Mia Roseberry, with backgrounds in General Contracting and with special education, respectively, and as they state on their website, their effort is to, "use their skills as real estate investors to help provide transitional housing to service members with Traumatic Brain Injury."

   This is a fantastic charity, and something that I thought would be great idea to announce here on this Blog, since their vision runs along the lines of the business of housing in which we are all involved in, either directly or indirectly.

   When you have a chance, take a look at their website, and see how you can help our heroes gain back their lives after defending us with their own lives!

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

December 10, 2010

Does Subprime Still Exist ?

Hi Folks,

   Hope you've had a great week, and that you've been able to keep warm !

   A few days ago, a colleague of mine asked me if subprime loans still exist, and I realized that I have not heard the term, "subprime", for quite a while, and I also realized that before responding to him, I had better gather a consensus from some mortgage professionals with knowledge on this topic. At the same time, I figured that this might be something to share with all of you good folks out there, as well.

   We spoke with a few sources, one of which is Fred Glick, a mortgage broker and banker, who says that, "Fannie Mae and Freddie Mac now have minimum credit score standards based on loan to value.", and that the, "new subprime lenders are private ones that charge a lot in rates because they are limited to what they charge in points by many different state and federal laws, including but not limited to what is coming out under the Merkely Amendment of Dodd-Frank", that, "limits compensation to a maximum of 3% of the loan amount and does not allow for both front end points and back end compensation from lender to broker in the same transaction."

   Steven Bote, Mortgage Planner, says that the "very short answer" is, "no, subprime lending does not exist.", and he continues to say that, "for me, the defining characteristic of all subprime loans is the absence of "documented income necessary to support the ability to reasonably repay.". Bote says that today, residential financing is on the "complete opposite extreme of the lending spectrum from where it was three years ago during the height of the subprime era, and as such, everything is fully documented (pay stubs, W2s, tax returns, schedules, etcetera)."

   Any discussion on lending would not be complete without looking at the impact of FHA and VA loans, of which Bote calls, "Government-based loans that allow for higher LTV-based financing, such as FHA and VA". Bote says, that for example, "FHA allows a person to buy an owner-occupied 4-unit property with as little 3.5% down of the purchase price, and VA financing of the same property type allows for 0% down payment (and with as low as a 620 middle FICO)", and says, "To put things into perspective, conventional financing requires all buyers to put down a minimum of 20% of the purchase price." Glick says on a similar note that the, "VA has gotten tougher and FHA claims not to have a minimum, but the GNMA market is moving up to 620 to 640 as a minimum. So, for the people with the scores in the 5's, it's a problem unless you have lots and lots of equity."

   Greg Cook, a Mortgage Professional, agrees that a, "certain segment of the subprime market is being served by FHA financing", and also says that, "Most subprime (hard money) lenders have gotten out of owner occupied loans because federal and state legislation limit the total fees that can be charged. These limitations do not apply to commercial, business or investor loans, so hard money lenders have evolved back to these types, which were their staples before the rise of subprime."

   So, with all of this information in hand, I have duly advised my colleague that the subprime market does still exist (well, kind of), and as Cook said, he has seen, "subprime mortgages start out as hard money, morph into subprime for homeowners, and back to hard money.".

   Do you have anything to add to this discussion? We welcome your comments and insights.

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

TAGS: #mortgage #loans #hardmoney

December 8, 2010

In Rememberance of Pearl Harbor

Hi Folks,
   As you may notice, this post is being written on the 8th of December, which is one day after the commemoration of the 69th anniversary of the atrocious attack of Pearl Harbor. The point of making this post one day later is to remind everyone that we need to always remember these events that shape our history not only on the actual day, but the day after, and so forth.

   The sacrifices that were made by the victims and their families deserve to be in our thoughts every day, as their courage and bravery is what permits you and I to live free and to be free to express ourselves.

   A deep and heartfelt "Thank You" to all of the men and women who serve in our Armed forces!

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

December 6, 2010

Winter, Profiles, and Technology

Hi All,
   Hope you had a really nice weekend. Winter has turned quite rapidly here in New York, and the snow can't be too far off !

   Recently, we have had some people ask about the behind-the-scenes folks here at HomeRun Homes, and we promise that we will get them to profile themselves in the coming weeks. A memo has been circulated advising against unnecessary shyness and forbidding them from remaining in the shadows! OK, no memo like that was circulated, however, on a serious note, we will try to have one of our very interesting and instrumental staff members profiled for this Blog to meet your requests.

   Quiet week in terms of housing numbers, as there are no housing-related releases scheduled for this week, but there are some economic numbers coming out (and they always affect the housing market, either directly or indirectly).

   On a side note, we have had the opportunity to stress-test a very cool and very powerful new printer (the Epson Workforce 635 All-in-one Printer, Copier, Scanner, Fax, and Wi-Fi). We love this thing ! Easy to Set up, remarkably simple to understand, and blazing fast ! The installation was a little long, and there was no network/Ethernet cable provided, but overall, we have been printing at break-neck speed. In addition, our office manager is happy, as we were able to decommission a printer, scanner, and fax machine that were replaced with this one unit!

   Ahh..."Technology Rules" !

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

December 3, 2010

Two Personal Traits Place Real Estate Success Within Your Reach

Hi Folks,

   Happy Friday, and welcome to the weekend.

   It's been quite some time since we sprinkled a little bit of motivation on you, and it's sprinkling time !

   I have personally received a large amount of communication over the past 8 years of running Lease2Buy.com, and a fair amount of it has been requests for advice on "how to make it" in the Real Estate business. The correct answer is that there is no one true answer.

   Let me define that: Real Estate is broken down into so many small niches, that each one has it's own targets and methods. I don't want to get into each one of them, as that is outside the scope of this discussion, however, some examples are Real Estate Investing in Residential properties, Real Estate Investing in Commercial properties, Rent to Own, Short Sales, etc.

   Now, as each of these segments can have their very own set of procedures you need to follow in order to "make it", there are two major over-riding themes (great personal traits) that you can follow, which will carry you towards your goals, and let's take a look at them here:

1. Honesty - As it is no surprise, you will not get anywhere without the grace of the masses, and the best way to receive that is by telling the truth. As sad as it is, there are a lot of bad apples who will try to deceive others, but that provides only a short time gain for them. Those who are honest will be the recipients of word-of-mouth business referrals, as well as the power of good karma.

2. Do What You Say - If you promise to make a call, attend a meeting, send an E-mail, or anything else along those lines, make sure you do it! We are truly as good as our word. For example, say a given person tells you they will send you a proposal, and it never arrives. They apologize and say that they will E-mail it within 30 minutes. After one hour, you still have not received it. What will you think about that person? It should begin to raise red flags. Don't let this happen to you - perform what you promise !

   Remember, Honesty + Performance = Integrity. Integrity will allow you to propel yourself forward toward a successful career in Real Estate, and in actuality, any business endeavor in which you are involved. I will gladly speak further about this in front of any group that you believe needs to have this further defined in relation to Real Estate and Business in General (See Our Public Speaking Section).

Keep your head up, your words true, and do what you say !

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

December 1, 2010

Free Land Offers ? Are Things That Bad ?

Hi All,
   Welcome to the first day of December, and the Holiday Season. It sounds like a cliche, but I cannot believe how fast the year went buy!

   Well, it had to happen eventually; things have been so bad, that there are now 7 towns that are offering land for free (Yes, you heard me...for Free !). Colleen Kane from CNBC.com put out an article titled, "7 Towns Where Land is Free", and it lists the 7 cities as Marne, Iowa, New Richland, MN, Kansas (multiple towns !), Beatrice, NE, Muskegon, MI, Curtis, NE, and Camden, ME (I've attended the "Lobster Festival" in Camden, and it is gorgeous!).

   You know, if we spoke about free land just a few years back, you might have insisted I ought to be locked away for speaking such falsehoods, but this is real, folks !

   In keeping with the topic of tough-times, the S&P/Case-Shiller Home Price Indices were released yesterday, and the figures showed this U.S. National Home Price Index drop 2% in Q3 of this year, and 1.5% off from their levels from a year-earlier. Thus the prospect of potentially more free land offers.

   What are your thoughts on these "Free land" offers. Do you know of any other towns that should be offering free land to help their waning population and decreasing land and property values? Please chime in and let us know.

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