Rent to own houses – Learn about how to rent to own Homes

Due to the cash shortage issues as well asproblems in downpayment, everyone who is willing to buy a house cannot do so.

However, thereare some good options for such buyers, one being the "rent to own houses" option.

Suchagreements allow renters to buy properties at some point within their period of lease.

Although the renters are required to pay a certain amount higher than the standard rent,that amount will later add up to his credit and will be used at the time of buying thehouse.

There are certain pros and cons to rent toown houses.

For example, if a buyer fails to buy a property at the end of the lease,he wouldn't get back the extra amount he paid for the rent.

Besides that, some rent to ownhomes agreement are designed in such a way that the tenant is obliged to buy the houseat any cost at the end of the lease.

Therefore, one should be very careful and should plantheir finance well before going for a rent to own house agreement.

If you are intenton renting to own houses, you can search for an appropriate house on your local newspaperlistings, craiglist or get info on them from real estate agents.

Refer to the links in the description belowto learn more about Rent to Own Houses.

Source: Youtube

My Rental Property Damaged and Trashed

OK.

about to.

Take a look at my property that has.

according to Carlo and James been seriously screwed by my tenants here.

(that) just moved out last weekend.

Alright so.

This is the main floor, and we are just having it repainted and everything.

(Let's)take a look at the basement.

So this is their idea of how you utilize basement storage apparently.

These are the same guys sending me emails asking about their security deposits.

but I'm guessing this is probably nothing compared to what we are about to see.

James:Don't forget the ceiling.

right here.

Ah the crack.

That's not necessarily them.

James:Um, I wasn't thinking (that) at first James: but it could be just because James: of the bathroom, directly above this one Oh it's leaking? James:Um.

Not leaking but James:just take a look at it you'll James:see what I mean.

Alright Alright First room.

These people lived like animals.

Carlo:This thing work? If it does, we could use it.

James:We have a box for it downstairs.

(electronic beep) (sound of portable ac fan) You did turn off the AC right? James:Yeah OK James:It's been of since you told me to turn it off.

Especially since that window is wide open.

James:Yeah Was it open the whole time? James:Huh? Was that window open the whole time? James:Which one.

That one? Yeah James: (I)think so and the AC was on? (that) doesn't make any sense.

This is actually the least bad.

James:Yeah I think this was James:Chris's room because James:it kind of has that dog smell.

which they weren't supposed to have pets.

There's (inaudible) proof so this is a dog bone? James:Looks like it.

Something.

James: but I mean you can see they actually James: did a pretty good job painting.

Yeah I know Chris did that.

inaudible This is the sh** fest.

Look at this sh**! Sigh.

It's like they've never cleaned the bathroom.

once in their whole history.

James: Inaudible Got it.

We'll leave the light on for now.

This is on it's way up to the top.

Hole in the wall This must be when they got arrested James:Um hmm cause there's a bunch of soil James:Yeah The cops must have uprooted everything.

James:Yeah I imagine so.

But even still.

James:It might have been like mostly James: cops going through the trash.

You know it's not nearly as hot up here as I thought it would be.

James:Inaudible Yeah but the AC is not even on.

Sigh This is just insane.

I don't even.

I don't know it might not have been like this when the before the cops came in and tore it all up.

but still James:.

But I'm seeing a lot of the cigarette buts James:and like just food everywhere.

That doesn't have anything to do with the cops I guess.

James:yeah Plastic bottle caps, What other kind of sh** (do) we have here? Carlo: It looks like they had pots here.

Carlo:POTS.

Where you are standing.

Pot? Carlo:Pots.

Yeah.

There is evidence of soil and pots everywhere.

Carlo:I mean it's a f**king watering can here.

Yup Carlo:.

Air pump? sigh.

Trying to get a close up of all this sh** I mean it doesn't even look like he tried f**king clean this place out.

You know?.

No attempt made whatsoever.

James: is that the aqua teen hunger force DVD (Laughing) Carlo: God**mit! James:Oh wait no they're both in there.

Carlo:Inaudible.

Laughing.

Carlo: CORNDOGS FU** YEAH!!!!!!!!!!!!!!!!!!!!!!!! James:This was just there.

OK at least nobody can see this.

James:Yeah What's with all the PVC pipe? James:Irrigation? We need a junk truck.

James: Yeah.

Ok It used to be so nice, man.

Wallet? Carlo:Um Hmm James:It would be nice to trim down these branches James:and put in a basketball hoop.

Carlo:How weird would it be for me to look in there for money? James: Where? Carlo:That wallets out just for show.

Yeah I know.

So How did you feel when you first saw all the work you had to do? James:Well James:Fu**ed!!!!!!!!!!!!!!!!!! Alright well.

James:At least it's something to do right? Yeah! There's your summer job right there buddy.

Source: Youtube

How to Calculate Numbers on a Rental Property

Welcome to Hipster's first how-to video! I'm going to show you how to run very quick numbers on a rental property.

You can use this formula—so easy and so fast —for any property you're looking at.

It's so straightforward.

I'm going to do it on this little whiteboard here and use my calculator.

(Yes, it is actually that large).

I'll be behind the scenes here doing my calculations while I write out what is going on.

I'm using an actual rental property as an example.

It has a purchase price (you have to love my handwriting) of $100,000.

00.

In rent (and always verify this before you buy any property.

Verify it with property managers or… just verify it), this particular house gets $1075.

00 in rent.

This house is in Indianapolis.

It was built in 2002, I think.

Super-cute little house.

Three bedroom, 2 bath.

But all we care about right now are the numbers.

I'm looking at this property.

What do I want to take into consideration? I write out my list of things that I need numbers for first: taxes, insurance (again, don't you love my handwriting), I always make an estimate for vacancies and repairs (which I'll touch base on in a second), and then for me I always use property management so I have that line.

That may be optional.

For sure, you're going to have taxes and insurance.

Vacancies and repairs are really up for your best guess.

I buy turnkeys so they're already rehabbed.

I use 7% for vacancies.

You can look up the statistics of a particular city and see if that number is about right.

And for repairs, like I said, fully rehabbed, so I just use 5% for repairs.

If you calculate this, this particular house the taxes per month (and this is all monthly) are about $60.

00 a month, which is excellent.

Insurance on this property is about $45.

00.

Seven percent (and those percentages are of the monthly rent) of that is going to be $75.

00.

Repairs are going to be 5% which is $54.

00.

The property management in this case is 10% (should've put that there), and that would equal about $108.

00.

Total all those up.

These are going to be all your expenses.

Grand total: $342 for monthly expenses.

Now, here's your income: $1075.

00.

Here are your expenses: $342.

00.

So do $1075.

00 minus $342.

00 and if you buy this property for all cash in theory per month you should be getting $733.

00.

That is cash flow in your pocket per month.

To calculate your cap rate, you are going to do $733.

00 times 12 (because you want it annually) and the total amount that you paid for this house is $100,000.

00, which is going to equal… calculations…8796 divided by 100,000…you're going to get 0.

088, which equals 8.

8%.

This is your cap rate.

That is the main number.

That's going to explain to you kind of where the income is in relation to where the income is in relation to howmuch you paid for the property I know you're already asking (and I don't even have an eraser… let's see…hang on), I know you're already asking "Well, what if I'm financing because I've got a mortgage?" Ok.

Not a problem.

Let's erase this stuff.

You already know your expenses.

We're going to get rid this section.

We'll leave that $324.

00 for total expenses.

(I guess I could've written a little smaller.

) How do you deal with the mortgage? Well, $342.

00 was your total expenses without a mortgage.

All you need to do now is figure out what your mortgage payment per month is going to be.

Go online, find any old mortgage online calculator, plug in the numbers and see what your payment is going to be.

For this one, I used a 5% interest rate, and with 20% down (which is standard for an investment property), you're going to have a loan of $80,000.

00 (that's an $80K loan).

Your mortgage payment at a 5% interest rate is going to be $429.

00 per month.

Since the total expenses were $342.

00 already, just add those to $429.

00.

This will be your new expenses… (am I doing that right?) $771.

00.

Yeah so now you have Now you have $1075.

00 minus $771.

00 is going to give you $304.

00 per month.

This is your new net income after the mortgage payment.

On this house, you're still bringing home $304.

00 per month, which is ridiculous for a rental property.

That's amazing! That's $300 easy in your pocket per month.

The only thing you can do other than this is… you already have your cap rate…now you want to calculate your cash-on-cash return which ultimately for any purchase is all that matters.

Cap rates only explain whether you're getting a good price for the property or not.

Your cash-on-cash is actually how much you're making based on how much money you put into the deal.

So, $304.

00… make it annual, so times 12.

Then, instead of using your total purchase price, you want to put in how much money you actually put into the deal.

Your down payment on a $100,000.

00 house was probably $20,000.

thousand dollars I went ahead and rounded that up to $25,000 because you're probably going to have about $5000.

00 in closing cost.

That's going to give you 3648 divided by 25,000 equals 0.

1459.

Change that to a percentage and you are looking at a 14.

6% cash-on-cash return.

That is the number that you care about.

If you are paying all cash for the property all you care about is this 8.

8%, because your cap rate and your cash-on-cash will be the same for an all-cash buy.

For a finance buy (and this explains perfectly why I'm such a fan of leveraging money as much as possible), you're making almost 15% return on your money… on your actual cash that you invest.

That's amazing! With real estate prices gone up how they have, to be able to make a 15% cash-on-cash is great.

This is a fully rehabbed house.

Tenants are in it.

Property managers are in place.

The only work it took was for you to sign the papers and get a home inspection.

Boom! There are your numbers.

A very quick summary… We'll see if I can erase this super fast.

I'm not even going to try and erase it all.

I'll even do it in blue since I'm holding a blue marker here.

Step ONE: Calculate your expenses.

As a recap, that's going to be your taxes, insurance, property management fees, and estimate for vacancy and repairs, and then if you have the mortgage, the mortgage expenses.

You already know your income, so TWO: take your income minus your expenses and that will equal your net cash flow.

Don't ever buy a property that does not tell you that you're going to get a positive…Let's see… What did I say? Don't ever buy a property that suggests you're going to make a negative cash flow.

You always, always want positive.

THREE: Calculate the cap rate, which is your net income, times 12, divided by purchase price.

FOUR: If you're financing calculate your cash-on-cash… which is your net with the financing, times 12, divided by your cash in.

As a clarification point, the cap rate does not include any financing cost.

Your mortgage expense is not included in the expenses.

It has nothing to do with the equation.

That is standard.

Cap rates do not include financing.

It's assuming an all-cash purchase, because whether you finance or not (I like to say) is your own problem.

It has nothing to do with the purchase price.

What matters for you financers is the cash-on-cash, which does in fact take into account the mortgage expense.

That will calculate your official return.

Alright? That's easy rental property numbers.

Another…one last disclaimer… this does not include rehabs.

If you're rehabbing a property you have got to include those costs in these equations.

It takes a couple of extra steps.

It's still not a big deal.

In general… a general formula for you.

I hope it helps!.

Source: Youtube

How to Sell Your House – Part 2: Condition is more than just paint & flowers

Homes in great to excellent conditionsell on average 18 days faster than the competition andat a higher price and with less price reductions.

But thisvideo is not about how to clean, how to put out fresh flowers,where to put throw pillows, and how to arrange furniture.

This videois about why condition is so important what youcan do about it.

Our goal here is to give you informationeducation and advice to make you powerful, smart, informed realestate consumers.

So much attention is given to make sureyou paint this, make sure that is fixed, open thewindows, turn on the lights.

All those things in you should do butthey're not the thing really connects with the people whoare going to buy your house.

The ones you need to connect with, you don'tconnect with them through paint color, you don't connect with him throughcenterpieces on dining room tables.

You connect with him through anexperience that you take them through while they are at your home.

One of the first things you want to dowhen you're preparing your home for sale and dealing with something like thecondition of your home is to have a level of expectationmanagement.

You want to understand what you can doand what you can't.

Every home has defects every home hasflaws.

Every home has positive features andevery home has negative features.

You can't fix everything.

Everything doesn't end on the day that you put the house onthe market.

The budget and time that you set aside has to address those thingsthat you're gonna do prior to market, during market, and alsothose things are going to come up via inspections or appraisals.

Especially if there's things like FHA and VA which have specific requirements that you need to fix certain things orthe buyer can't get the loan thus you had no deal and you have no sale.

The initial push is really where youwanna put the most attention and effort but you don't want to be caught offguard in the back and by something.

Well I recommend that you as a sellerget an inspection prior to.

You signed a contract, you've agreed on a price,you've agreed on terms.

You're moving through the process.

You got that home inspection addendum hanging overyou.

This now is a stressful moment becauseyou don't know what the inspector is gonna find if you haven't done one already.

You don't know what's gonna come up.

Youhave no idea what it's going to cost you to fix some of these things.

If you've done that inspection on the frontend, you know you have a really good idea.

The likelihood of finding some gee-whiz, wow, oh that's gonna cost means thousands of dollars or cost me thissale, the likelihood of that happening is dramatically reduced by getting aninspection in the front end.

Another person to bring any give you somehelp is a stager.

To give you a perspective on your homethat you don't have.

Don't expect most buyers to be SherlockHolmes and be able to find every wonderful thing about your house.

Show it to them! Show the existing features, demonstratethe potential, and allow them to picture themselvesliving in the home.

If you have a vacant home or you have a partially vacant home, oryou have some empty rooms and you really don't know what to do:rather than just take a picture of an empty room and post that, why not ask a stager or designed to giveyou a sketch? What would they do there? This is whatthis room could look like, this is what this house could look like.

and don't just hope that the buyer has acreative mind I can see past the emptiness up that particular space orthat house.

You need to appeal to all five senseswithin those first five seconds where buyer walks inthe door and takes no more than five steps.

Buyers are alert and in tune with their sensesimmediately when they walk in the door.

They're looking for triggers.

Homeshowings don't just happen at random.

You have time to prepare for thesethings.

You pull out those bottles of water.

You pull out those cold Coca Cola's youbrew that pot of coffee.

You take those muffins in put them inthe toaster oven or microwave for a second.

Ann what you do is now you startto appeal to their senses of taste and smell.

If you have an area like abreakfast nook or you have a place with a great view, have a nice little table set up encouragethem to go there with it or that's where you put the said refreshment.

Be creative aboutthat and welcome folks into your home and allow themto have a little moment while they are visiting your home tofeel like they are living there.

You get thethermostat set right.

If it's in the wintertime, you crank it up a little bit to get alittle bit warm in there.

If it's in the summer time, you crank it down a littlebit to get it a little bit cool in there.

You want to demonstrate that this houseis a very comfortable place to live in.

If it gets a nice cross breeze duringcertain times a year, open up the windows and allow that to happen.

So you allow that feel you you get thatinitial feel when you walk in that this is a comfortable place to live.

Sound is easy.

It's so easy to go around today withsmall portable radios, and a lot of houses are already wired for soundanyway.

Sight is a lot more than keeping thingsclean and turning on your lights.

Sight is about directing your buyers towhere you want them to go in an order in which you want them to go.

Tell them where to start & where to stop.

where to go what to look for when they'rethere.

Think a little bit like Alice inWonderland as you're bringing buyers to your house.

Have little signs that say, "touch this" "feelthis" "pull this" "open this.

" Lead buyers on atour of your house, instead of having them wander around andyou hoping that they come across the thingsthat are great about your house.

getting your home in selling conditionis far more that taking your family photosdown off the wall, putting a buncha stuff in storage and repainting your bedroom.

If the prettiest, nicest, best maintained house in theneighborhood goes for sale all week after you put your house on the market, are youprepared to compete? Understand what the expectations are,have a budget and a time line.

Always continually improve your situation and improve your home throughout theentire process.

Hire an inspector.

Hire a stagerand create that guided toward to allow buyers to see themselves in the home.

And appeal to all five senses within five seconds and the first fivesteps that buyers walk into your house.

Delight them.

Wow them.

From hey this is nice, "to wow I have to havethis!" Put those aspects together and your homeis in the best condition that it can be and dominate your local market so youget maximum money, shortest amount of time, least amount ofhassles.

Stay tuned for the next video in this series on "Competition.

" Like this video, comment, share, and subscribe to our channel.

Thank you for watching and see you next time.

[Why can't I say thatand why does that keep not coming out right? This stink but is driving me nuts.

I you have five seconds to sell me this pen.

it's not a not Gettin a little loopy.

Make sure you hit the pillows create that little.

Little V.

Do not hit the pillow.

You hit.

the pillow and you get that little crease a pretty V".

Source: Youtube

When The Right Time To Sell, And When Should You Rent or Hold It?

Brian: I’m Brian Spitz, president of BigState Home Buyers.

Thanks for joining us and today, as our guest, we have Amber Carrillo,with Carrington Real Estate Services.

And we’re going to talk about when is the righttime to sell your house, and whether or not you should rent or sell it.

Whether it’sin this current market or just in general.

So, thanks so much for coming today.

Amber: Absolutely.

Thanks for having me.

Rent home or sell it(0:00:53.

1) Brian: Absolutely.

So, tell us about renting your home or selling it.

Amber: Well, when it comes to renting your home or selling it, there are just so manydifferent factors.

A lot of it is going to depend on you, on personal finances.

And whatworks best for your situation.

Are you in a situation where you need to sell your housein order to buy another one? Or are you in a situation where you’re going to be a longdistance landlord.

There are so many factors that go into that.

Brian: Yeah, that’s true.

I mean, a lot of it, I guess, is whether or not you needthe down payment and the equity of your first house or whether your mortgage lender requiresthat you only have one loan.

Amber: Exactly.

Brian: When you see people rent houses out, in my experience, at Big State Home Buyers,we buy houses directly from sellers and one of our biggest client bases is actually, afunny word, is tired landlords, people that have been landlords and want out of the business.

So, what I tell people is it’s not as easy as it looks.

But what is your experience?Of course, it works out really well for some people, especially if you get the right tenants.

Amber: Right.

(0:01:54.

8) Getting a Property Manager ifRenting Brian: What do you see for the average personwho is thinking about renting their home, rather than selling?Amber: Well, if you do not have the experience, I would absolutely recommend that you contractthat out with someone to handle the property management, because there are just so manydifferent laws, you know, tenant rights and landlord rights, and you really need to bestudying up on those types of things.

If not, have a really good real estate attorneyin your corner that you can call whenever a question or situation arises.

When it comesto doing evictions and stuff like that, it can get really hairy, so it’s not somethingthat you would always want to handle hands on.

Brian: Oh, yeah, definitely not.

The biggest reason people try to take that on themselvesis basically to save the money you pay the property manager but my philosophy is youshould pay people to do what they do best so you can do what you do best.

Amber: That’s exactly right.

Brian: Property management is a tough deal.

(0:02:44.

4) Screening tenants Amber: It is a tough deal.

And it’s so important,if that’s something that you’ve chosen to do, is that you screen the applicants verywell and you’ve got a system in place to screen those.

Brian: Right.

Amber: So a lot of times, if you’re goingto list it with an agent to lease it out, we have those resources available to do backgroundchecks and credit screenings and stuff like that.

Brian: Right.

Amber: To be able to prevent putting felonsand stuff like that in the property.

Brian: Right.

And so a lot of times, peoplejust put a For Rent sign in front of their house and they kind of take whichever tenantlooks like they can pay the rent.

But the reality is if you just wait for the righttenant, you end up in a much better position.

Amber: That’s right.

Brian: So, definitely, you know, and the market right now for rentals, just like for sales,is really strong.

So you can hold out for the right tenant.

Amber: Right.

Absolutely.

There’s tons of investors in the market that are snappingup the houses and turning them, holding them for a period of five to ten and even twentyyears, in some cases.

And they’re renting those properties out.

And there’s a highdemand for rentals.

There are so many people moving to Houston on a weekly basis, so, yeah,there’s a need out there.

And at every turn that you make here in Houston, you see newapartment complexes going up.

Brian: Everywhere.

It’s crazy.

Amber: Yeah.

And occupancy rate is very high right now, so rentals, they are a great investment.

Brian: So you can hold out for a good tenant.

If you’re going to rent your house, holdit out for a good tenant.

Amber: You can, but again, that just dependson if you have note on that house that you need to pay.

Yeah, if you’re in a bind financially,then that’s going to effect on how long you hold out for a good tenant.

9:04:15.

5) When is right time to sell Brian: Right.

Oh, I guess, that’s true,too.

How do you know when it’s the right time to sell? You know, there are a lot ofthings about the time of year or the market.

Obviously, the market, the perception is themarket is very strong in Houston, which it is, but what do you tell people when theyask you, what is the right time to sell my house?Amber: Well, you know, many people are looking to sell during the summertime.

That summertimefrenzy starts right in May and goes until about the end of August, beginning of September.

And that’s when you run into situations where you have multiple offers and there’sjust, you know, it’s not uncommon to have your house shown ten times a day.

So, butthat’s a time where people are moving.

You know, teachers are out of school for the summer.

Their kids are out of school for the summer.

And so it’s just more convenient to moveduring that time.

Generally, though, when people are lookingfor a house, if they’re going to be looking for a really good deal, they know the seasonsand they know to hold off.

Only people who really need to sell their house are goingto put their house on the market during Christmas time or during the holiday season.

Brian: Right.

Amber: So, if that’s something that you’refaced with, if it’s possible to put your house on the market during the frenzy, thebuying frenzy, I would definitely recommend it.

If not, you may take a hit in the priceby putting it on the market during the holiday season.

Brian: What’s the cut-off point? Like, if I have a house ready, can I put it on themarket November 1st? Is that too close to Thanksgiving? What is your opinion?Amber: There are people, sometimes, there are so many people moving into Houston, alot of relo’s are happening.

So there will be people, those people come any time of theyear.

Brian: Right.

Amber: And they still need to buy, just like everyone else.

And because we have such adeficit of homes and listings on the market available, right now, you’re not seeingthat impact as greatly as we did several years ago.

Brian: Right.

So really, any time right now in Houston is a good time to sell a house.

Amber: Absolutely.

(0:06:14.

3) Homestead ExemptionBrian: One of the other things that I see is, in our business, because we’re alwaysbuying, selling, buying, selling.

So we’re always closing houses and the fourth quarterof the year that, you know, November, December, October, those months can be some of our busiestmonths.

And one of the reasons I see in the past couple of years is the Homestead Exemption.

Doesn’t the Homestead Exemption cut off at the end of the year? You have to file forit by December 31st, don’t you, for the following year?Amber: You have to live in that house by December 31st.

Brian: Live in it.

Amber: Yes, of that year, in order to fileit for January.

Brian: So, there’s often a push to get closingsdone in the last weeks of the year so that you can get that Homestead Exemption.

Amber: There is.

And if you work with investors, like a lot of us do, then you’ll find abig push, you know, people are needing to make wise investments before the end of theyear for tax purposes.

So we usually, November, December, are some of our busiest months.

Brian: Yeah, they are.

Well, what else can you tell us about when to sell your house?Amber: Well, let’s see.

Brian: Or when you need to sell it.

Amber: Or sell it when you need to sell it.

Exactly right.

As far as seasons go, gosh(laughter).

I’m drawing a blank.

Brian: Well, that’s a really good start.

So if you want to rent your house, you can contact a good real estate agent, like yourself,and how can we reach you at? Amber: CarringtonRealEstateServices.

Com.

Brian: Okay, so CarringtonRealEstateServices.

Com.

If you want to sell your house fast and youdon’t want to list it and you don’t want to fix it, or if you’re a landlord that’stired of being a landlord, you can contact us at BigStateHomeBuyers.

Com.

But for theperson that wants to rent their house out, and I agree, get yourself a good agent.

Makesure you screen the tenants.

Hold out, if you can, for the good tenant that’s stablewith a job they’ve had for a while and good rent history.

And if you want to sell it,even though the seasons, the old thing is sell in the summer, hold in winter.

If you’rein Houston and you want to sell your house, it looks like any time is the time to do it.

Amber: Any time is a good time.

Brian: Great.

So again, I’m Brian Spitzwith Big State Home Buyers and we are here with Amber Carrillo with Carrington Real EstateServices and thank you very much for joining us.

Amber: You got it.

Brian: Great.

Thank you.

Source: Youtube

Planning to buy a house? Think again! Buy Vs Rent Analysis

To rent or to buy a house is a dilemma mostpeople face.

Let's try to address this from a purely financial point of view.

Meet Joe and Alice.

Joe wants to rent a house while Alice is thinking of buying one.

Image we have 2 similar houses available — one for renting and the other for buying.

Joehas to pay a thousand dollars a month to rent the house.

Alice, on the other hand, needsat least 300 thousand dollars to buy the house.

For the sake of simplicity let's assume thatAlice can get the mortgage for 6% interest rate – which is true in many developed countries.

And the loan she has taken is a repayment mortgage.

Which means her monthly mortgagepayment will include interest plus a small part of the principal amount.

Let's say sheis planning to pay back the loan in 30 years and she also needs to contribute about thousandfive hundred dollars towards maintenance.

We also assume that the property price goesup by 2 % a year.

You may noticed that in some parts the growth is much more than that.

But according to research over a large period of time, the rate is usually between 2 to3 percent.

If we use these assumptions, Alice will haveto pay about thousand five hundred dollars every months as repayment.

On top of thatshe also needs to pay for the house insurance.

Joe, on the other hand, pays 1000 dollarsas rent.

He also saves some amount of money in the bank.

For argument sake, let's considerthis amount to be the difference between the rent and Alice's repayment amount.

Since rentis likely to go up every year, we need to consider a 3% increase in rent every year.

Quite often, people decide to sell their old house and move to a new one.

In our case,let's say Alice wants to get a buy a bigger house in 10 years.

Considering the appreciation of the value of her house, her house will be worth around370,000 dollars.

Since she still owes money to the bank, she will be left with only 110,000dollars Joe on the other hand will have savings ofabout 130,000 after 10 years.

Which means he made 20,000 dollars more by renting.

Does this mean that renting is always better than buying?Not really! Let's consider the case of Bob, who also boughta similar house at the same time Alice bought hers.

But he bought the house in another partof the city.

And the house increased by 3% in value per year – that is an increase ofjust one percent than the house bought by Alice.

When he sells the house after the same10 years, he will make around 150,000 dollars.

He made 20,000 dollars more than Joe by buyingthe house! So if you ask me whether you should buy orrent, I would say it really depends on your situation.

There are certainly advantages and disadvantages to both.

If you rent you have more freedomto move to another location.

And if you buy you will have more freedom to modify yourhouse according to your taste.

You can also see that if you invest the moneyinstead of saving, it will also change the scenario.

Source: Youtube

How to sell a house. Inside secret…Beat the competition!

Competition is anything and everything thatby its mere existence can cost you time or money or both.

Is your home a contender, apretender, or dominator? Putting a few pictures into a video (which is not really a videoit's just a series of pictures set to crappy music) is not what we're about when it comesto marketing your home.

That's not being competitive that's just posting and praying.

That's justsetting it and forgetting it.

You are either growing or you’re dying.

You are eitheractive or you're not.

There is no static state.

Sitting back, posting and praying, seeingwhat happens, listing and vanishing is not the way we do business.

We do business bytaking action.

We have an action plan and a communication plan.

We have an open house planthat will blow your socks off! We have a plan in place to adjust to whatever the competitionbrings so we always keep your home in the top two or three in the market.

Source: Youtube

Why You Should NEVER Rent to Own Anything

Can you tell me why you should never rentto own anything? If you miss a payment, they can take everything.

That’s why it is called a rental.

But itlets me afford to get things in the house now, and that repo won’t land on my creditreport.

You pay as much in a year as it would costto buy the darn thing, up to twice as much as new.

And a lot of the rental appliancesand furniture are in worse shape than if you bought it new.

What can I do then if I can’t afford new? Have you considered Craigslist? I’m afraid it has bedbugs, fleas or both.

Try garage sales.

Then at least you’ll havethe person’s address in case it’s a piece of crap.

That doesn’t work when I need a workingwasher or dryer.

The Laundromat should fit in your budget,if you’re paying rental place rates.

That takes up too much time.

Go to the Sears Outlet place.

They have scratchand dent appliances for sale.

That sounds like the scratch and dent grocerystore, and I wouldn’t dare shop there.

The dishwasher motor and washing machine gutsshould work just as well.

It’s only the shiny smooth outsides that are scuffed up.

How much do I save? You could save anywhere from 20% to 60% onthe price of a new one, more if it is last year’s model.

If you’re really desperate,you could put it on a payment plan or credit card to buy it.

I can’t stand credit card interest rates.

You pay just as much or more per year if yourent to own and then miss payments, getting assessed with fees.

When is rent to own ever a good idea? Shouldyou do it if you only need furniture for a few months? In that case, pay extra for a furnished apartmentor live on a futon and card table until you can afford the furniture.

I don’t want to live like a starving student.

It’s just until you can upgrade to Mid-Americangarage sale.

Source: Youtube

Rent or Buy a House?

To buy, or not to buy.

That is the question.

Should you continue to rent? Or should youbuy your first home? This can be a challenging decision.

But it need not be.

In the nextfew minutes we'll show you simple way to determine exactly when to make the move to home ownership.

Let's start with a quick comparison of the advantages of both options.

Renting has twoprimary advantages: mobility and simplified financial obligations.

Buying a home has different advantages.

Each mortgage payment builds equity in your house;House payments remain essentially fixed, even as other prices rise; Your tax bill will likelybe lower; and your home improvements build upon your investment.

But when is it best to switch from renting to buying your first home? From a financialpoint of view, it essentially comes down to two factors:The minimum number of years you plan to own the house, and the size of your down payment.

We'll illustrate this with a spreadsheet we created in Google Drive.

(You can get your own copy of the spreadsheet by clicking on the link listed in the descriptionsection below and copy it into your own Google Drive.

)The cells with no shading contain the all information we need for our calculations.

The default values are typical of those for buying a starter home with a cost of $100,000.

A summary of the analysis is best illustrated by two graphs.

The first graph shows the projectedexpenses for both renting and homeownership over the coming years.

The curves show thatthe projected accumulated expenses for house ownership start out higher, but eventuallydrop below the rental expenses at some point in the future.

There are several reasons for this.

First, as soon as you buy a house, you incur thefuture cost of selling it.

Even though this expense won't be paid until the house is sold,we count it as an expense right up front.

It's this expense that makes homeownershipinitially cost more than renting.

In most cases, accumulated renting expenseswill eventually exceed the costs of owning a home.

This is because less money is spenton mortgage loan interest as you build home equity.

On the other hand, rental costs generallycontinue to rise at the rate of inflation.

By looking at this graph, it's clear thatyou will need to hold onto your house for at least a few years to break even.

So ifthere is a high likelihood of you moving soon, it's better to continue renting and save fora larger down payment.

This brings us to the second primary factor–yourdown payment.

A higher down payment means a smaller mortgage, which lowers your interestpayments, thereby lowering your overall house expenses.

Further, if your down payment is less than 20% of the house price, your loan will likelyrequire the additional expense of private mortgage insurance (or PMI) as part of yourmonthly house payment.

Now that we know the two primary factors impactingyour decision, let's look at the second graph in the spreadsheet.

One axis represents theamount of your down payment.

The other, is the minimum amount of time you plan to ownyour home.

If your situation puts you within the shaded region, it's better to continuerenting.

But if you determine that your situation puts you outside of the shaded region, it'stime to consider buying a home.

For example, this graph shows if you put 20% down, youshould plan to own the house for at least 2.

5 years.

You may have noticed that throughout our analysis, we have assumed that the values in our spreadsheetremain the same over time.

But in the world of real estate, nothing remains the same.

Inflation, mortgage rates, and home prices vary significantly over time.

So is the whole analysis hopeless and just a matter of luck? Fortunately not.

A homeownerhas one significant hedge against all these variables.

That hedge is "time.

" Accordingto the famous Case-Shiller index, given enough time, housing prices will on average trackinflation.

Therefore, in most cases, you can avoid a loss due to short-term depressed housingprices by simply holding onto your home longer.

As you have seen, the rent or buy decisiondoesn't need to be overly complicated.

By focusing on two important factors, you canstart charting your course to home ownership.

If you liked video and want to continue tolearn more about various aspects of home buying, please subscribe to the home buyer channel.

If your business involves home buying or financing, we encourage you to embed this video intoyour website.

Use the comment section to let us know whatyou think of this video and what other types of home buying topics you would like to seein the future.

Source: Youtube

Top Secret Sales Tip #14 – How to Sell Better – Better Customer Service | Sales Training Expert

Welcome to CBT News Saturday Morning SalesMeeting, brought to you by EasyCare.

And here, now, Dan Jourdan.

Hey Guys, it's Dan Jourdan,the sales energizer with another CBT Saturday Morning Meeting, baby! Let's go get 'em! It'sa big day today.

Not cause you're gonna go out there and crush people like that.

You'regonna go out and serve more people today.

You know, the people that earn the most moneyin the world always, are the people that serve the most amount of people.

Today, on thisSaturday, baby that's you! Let's go get 'em! I gotta tell you this story.

I learned thisfrom my son.

You've gotta figure out what they're buying and sell what they're buying!Don't sell what they're not buying.

And most of the things you learn in life, you learnfrom watching them.

In my case, I watch my kids.

I gotta a good boy.

He's a good boy!He's sixteen years old now but he's got deep, like dyslexic issues.

But we love it! It hasturned him into the person that he is.

When he was 11 years old, we kinda figured outthings are going on like this.

But it was great! He has such interest in other things.

We hadthis big storm around my neighborhood.

Trees are down.

Cars are all mangled.

Carpets arein the streets.

So, we're walking around the neighborhood because it was fun.

And Matthewlooks at the carpet on the ground and he looks at me, and says "Daddy, I bet you they'd payus 100 bucks to take that to the dump.

" He's thinking about business.

The next thing Iknow, he's knocking on the door.

I've got a load of carpet in the back of my truck andwe're off to the dump! And he made a 100 dollars! I go, "this is crazy!" He started a littlebusiness.

And his first day out, he was putting out flyers.

He was knocking on doors.

Andpeople were giving him, like old couches and chairs and lawn mowers.

And the lawn mowerswere made out of metal.

What do you think you do with that? He'd take them to the recyclingand get paid again! His first day out, he made two hundred and fifty dollars! He's eleven!I said, Matthew this is crazy! How do you do this? And he looked at me as only an 11-yearold can and said, "Daddy, you don't understand.

" And I'm looking at you, the car sales persontoday and saying, "you don't understand.

" He says, "you think they're giving me theseold couches and lawn mowers cause they want to get rid of these couches and lawn mowers.

Daddy, they're getting rid of this stuff and they're giving it to me because it makes themfeel good to do business with an eleven-year old.

Doesn't it?" You see, he knows his value!Do you know yours? Cause, I promise you, it's not the paint.

It's not the cup holders.

Ormaybe it's the cup holders.

But it's not all those things that you're thinking about.

You're selling an experience! They're gonna go home and talk to each other and they'regonna sit around at the kitchen table and say, "you know what? That was great! I feelreally good about that experience.

I love this car and I love the sales person evenmore.

I know they're gonna be there in the future.

" You're selling something more valuablethan the car.

You're selling peace of mind.

And it's cause that's what they're buying.

And Matthew knows it.

He said to me, after getting this done with Daddy, I felt liketwo years in the future and it's over.

Well, you've got a whole life.

You've got a wholelife to dominate.

Today! Take these ideas.

Take your energy! And just KILL IT with service!CBT News Saturday Morning Saturday Morning Sales Meeting, brought to you by Zurich.

Source: Youtube