Tag: Own

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

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

Affordable Housing Trends For 2016 – Rent vs. Own

>> Bob: WELCOME TO NORFOLKPERSPECTIVES CITY SLICE.

I'M BOB BATCHER.

WELL, IT'S THAT TIME WHERE YOU'RE KIND OF THINKING, WHAT'SMY FUTURE GOING TO BE WHEN IT COMES TO HOUSING.

SHOULD I RENT, SHOULD I BUY, CAN I AFFORD IT, CAN I AFFORD THERENT? WHAT SHOULD I BE DOING?I'M HEARING ALL KINDS OF THINGS.

WE HAVE TWO GUESTS ON TO SHEDSOME LIGHT ON YOUR FUTURE PLANNING.

HARVEY BILISOLY, REALTOR WITH THE REAL ESTATE GROUP, HOW YOUDOING? >> FINE.

THANK YOU, BOB.

>> Bob: AND JOE KERSEY, SENIORMORTGAGE BANKER WITH ATLANTIC BAY MORTGAGE GROUP.

BUY OR RENT, WHO WANTS TO ANSWER THAT ONE FIRST?>> SINCE JOE IS THE MORTGAGE BANKER, I'LL LET HIM OPEN WITHTHAT.

>> AT THIS POINT IN TIME, ITWOULD BE BUY.

WHEN DID YOU BUY YOUR FIRSTHOUSE? >> Bob: UNDER JIMMY CARTER'SPRESIDENCY IN 1980.

13% –>> SO OVER THE LAST 40 YEARS, THE AVERAGE RATE IS 8% ANDCURRENTLY WE'RE STILL SEEING RATES UNDER 4%, SO MAYBE THEYTICKED UP A QUARTER PERCENT IN THE LAST YEAR, THEY'RE STILLHISTORICALLY LOW, SO BY COMPARISON, WHEN YOU BOUGHT THATHOUSE BACK THEN, THE AMOUNT OF STWOUS FADE OVER THE LIFE –INTEREST YOU PAID OVER THE LIFE WOULD HAVE ALLOWED YOU TO BUYTWO OF THOSE HOUSES, WHEREAS NOW IT DEFINITELY MAKES A LOT MORESENSE TO TRY TO OWN A HOME.

THE AVERAGE RENT IN NORFOLK IS$1,071 A MONTH.

YOU COULD BUY A $100,000 HOME,YOUR PAYMENT WOULD BE AROUND 700 A MONTH.

YOU END UP WITH $70,000 OF EQUITY IN NET CASH AT THE END OFTEN YEARS VERSUS NOTHING AT THE END WITH THE RENTING, SO WHILEYOUR MONTHLY PAYMENT MIGHT BE A LITTLE CHEAPER ON THE RENT SIDE,THE FACT THAT YOU'RE BUILDING EQUITY AT THOSE LOW INTERESTRATES IS REALLY IS THE DRIVER OF THE HOME OWNERSHIP AND WHY YOUWANT TO TRY TO OWN VERSUS RENT.

>> Bob: CONVINCED ME.

>> LET ME PICK UP ON THAT.

THE DIFFERENCE BETWEEN RENTINGAND OWNING IS USUALLY 35% CHEAPER TO OWN IN THEMETROPOLITAN AREAS AND IN ALL 100 METROPOLITAN AREAS IN THEUNITED STATES, THE TOP 100, IT'S CHEAPER TO BUY THAN TO RENT.

SO WITH THE RATES AS JOE DESCRIBED, IT IS A GREAT TIMEAND WHAT WE'RE TRYING TO DO — GREAT TIME TO BUY AND WHAT WE'RETRYING TO DO IS EDUCATE BUYERS ON THE WAYS TO GO ABOUT FINDINGA HOME AND BUYING A HOME WITH THE RIGHT RATE AND SETTLING INTOTHE AMERICAN DREAM.

>> Bob: AND YOU MENTIONED THEAMERICAN DREAM AND THE REASON I BOUGHT THAT TOWNHOUSE WASBECAUSE I HAD GOTTEN MARRIED IN 1978, I WANTED TO GET A DOG, YOUONLY GET A DOG IF I — >> OWNED A PLACE.

>> Bob: HAD A FENCED-IN YARD AND MY DAD SAID GO FOR IT.

MY FIRST HOUSE PAYMENT I THINK WAS $561 A MORK NOT EVEN CLOSETO THAT NOW.

NOW AFTER WHATEVER WE WANT TOCALL IT, THE ECONOMIC BURP OR WHATEVER, THE MILLENNIALS AREMOVING AWAY FROM HOUSE PURCHASING AND GETTING INTOAPARTMENTS.

IT'S A LIFESTYLE.

>> IF YOU DON'T THINK YOU'RE GOING TO BE IN THE AREA MORETHAN FIVE YEARSING RENTING MIGHT NOT BE A BAD WAY TO GO.

>> Bob: WAIT A MINUTE, YOU'RE A MORTGAGE GUY.

>> I KNOW, BUT THERE'S A COST TO SELLING AND BUYING A PROPERTYAND YOU HAVE TO TAKE THAT INTO CONSIDERATION, BUT IF YOU THINKYOU'RE GOING TO BE HERE AT LEAST FIVE YEARS — HERE'S THE OTHERSTATISTIC, YOU SAID AFTER THE BURP.

THE PROBLEM IS RIGHT NOW RENTS ARE RISING A LOT FASTER THANANYTHING ELSE.

>> Bob: BECAUSE OF THE DEMANDFOR RENTAL.

>> EXACTLY.

SO IF YOU SAY, HEY, MY RENT'S FINE RIGHT NOW, IN TEN YEARSFROM NOW, IT JUST — YOU KNOW, 4% CLIP, YOUR RENT IS GOING TOOUTPACE THAT.

THAT'S AGAIN, THE OTHER REASONWITH THE INTEREST RATES AS LOW AS THEY ARE AND THE FACTS THATHOUSES ARE NOW STARTING TO APPRECIATE AGAIN.

WE BASICALLY HIT THE — YOU KNOW, THE PEAK OF THE MARKET WAS2006 IN TERMS OF HOUSE PRICES AND WE BOTTOMED OUT IN 2011,SOME SAY 2011 TO 2013, BUT AS THE AMOUNT OF FORECLOSURES ANDSHORT SALES BEGIN TO COME OUT OF THE MARKET, YOU SEE HOUSE PRICESRISE AGAIN AND THAT'S YET ANOTHER REASON TO WANT TO TAKETHE STEP INTO HOME OWNERSHIP.

>> Bob: OKAY, CRAZY IDEA.

BECAUSE I WAS A RENTER FOR 12 YEARS.

TOOK ADVANTAGE OF THE OBAMA PROGRAM BEING A FIRST-TIME HOMEBUYER, GOT INTO A NEW HOUSE OR A HOUSE.

CRAZY IDEA, YOU KNOW, I'M TOWARD THE END OF MY CAREER TIME AND IWANT A LIFESTYLE CHANGE, SO MY HOUSE COULD BE A GOOD RENTALPROPERTY.

SO I HAVE THAT OPTION NOW,RIGHT? >> EXACTLY, AND THAT'S THE OTHERTHING.

IF YOU'RE ABLE TO LOCK INTO THAT30-YEAR FIXED RATE, THEN YOU'RE ABLE TO, DOWN THE FUTURE, LIKEYOU SAID, IF YOU DECIDE I'M GOING TO GO LIVE IN A CONDO NOWOR RENT, WHATEVER, YOU NOW HAVE THE ABILITY TO RENT YOUR HOUSEOUT AND NOT HAVE TO, YOU KNOW, HAVE SUCH A HIGH THRESHOLD INORDER FOR YOU TO BREAK EVEN OR MAKE A PROFIT EVERY MONTH.

>> Bob: HARVEY, IS HE MAKING YOU NERVOUS HERE?>> NO, HE'S NOT.

WE'VE BEEN WORKING TOGETHER AWHILE.

>> Bob: AS A REALTOR, HOW DO YOUPREPARE SOMEBODY FOR MAKING THAT DECISION TO BUY?LET'S TAKE SOMEBODY IN THE WORKFORCE LIKE A FIREFIGHTER ORA POLICE OFFICER.

>> THAT'S WHAT WE'RE ABOUT, OURWORKFORCE HOUSING INITIATIVE IS TO FIND HOMES THAT AREACCESSIBLE AND AFFORDABLE FOR PEOPLE WHO SERVE THE COMMUNITY,BUT CAN'T AFFORD TO LIVE IN THE COMMUNITY AND THERE'S A GREATNATIONAL CRISIS ABOUT PEOPLE WHO LIVE HERE, WORK HERE, MAKE$37,000 AS A STARTING FIREFIGHTER OR POLICE OFFICER,ABOUT 41,000 IN NORFOLK AS A TEACHER, WHERE CAN THEY GO, WHATDO THEY DO? YOU KNOW, BECAUSE THEY'RESERVING THE COMMUNITY, BUT AGAIN, THEY'RE FRIED OUT BY THEBURP — PRICED OUT BY THE PURPOSE AND THE SUBSEQUENT RAISEIN THE MARKET.

WHAT JOE AND I ARE DOING ISINVENTORYING HOMES.

I AS THE REALTOR, THROUGH THEMLS SYSTEM, WHICH ALLOWS ME TO FIND OUT THAT THERE ARE 232HOMES IN NORFOLK NOW FOR SALE IN THE PRICE RANGE OF 150 TO$200,000.

WHICH WE WOULD CALL, BOB,AFFORDABLE HOUSING OR WORKFORCE HOW LONG.

AND THAT — JUST THAT TERM, WORKFORCE HOUSING MEANS HOUSINGFOR PEOPLE LIKE FIREFIGHTERS, POLICE OFFICERS, TEACHERS, WHOARE ESSENTIAL TO THE COMMUNITY.

BUS DRIVERS, THE MAINTENANCEPEOPLE WHO WORK ON THOSE BUSES.

>> Bob: NOW, YOU'VE GOT A HOUSEAT $150,000.

AT THE GOING LOWEST INTERESTRATE OFF THE TOP OF YOUR HEAD — >> THOUSAND DOLLARS A MONTH.

>> Bob: SO YOU ENTER INTO IT AND BECAUSE YOU DIDN'T MAKE THAT CARPAYMENT, YOU DIDN'T DO THIS, DIDN'T DO THAT, IT ALL OF ASUDDEN CREEPS UP ON YOU, RIGHT? >> CORRECT.

>> Bob: BECAUSE THE INTEREST RATE IS DEPENDENT UPON –>> CREDIT SCORE.

I MEAN, THAT'S ONE OF THE THINGSWE WANT TO DO.

THERE'S A LOT OF PEOPLE WHO CANAFFORD — THEY NEVER MISS A RENT PAYMENT, BUT THEY CAN'T SEEM TOSAVE AND WE WANT TO EDUCATE THEM, THERE ARE PROGRAMS OUTTHERE.

THERE ARE PROGRAMS OUT THERETHAT GET YOU THAT GRANT MONEY YOU MAY NEED TO GET YOU INWITHOUT THE DOWN PAYMENT AND LET YOU START TO MAKE THE PAYMENT.

SO INSTEAD OF PAYING THE LANDLORD, IT'S REALLY A SAVINGSPLAN.

YOU SAID, HEY, MY RENT ASTHOUSAND DOLLARS A MONTH AND MY WIFE AND I HAVE A GOAL OFPUTTING $100 A MONTH INTO THE SAVINGS ACCOUNT.

WE DON'T HAVE THE SXOT TICK LOANS OUT THERE THAT ARENEGATIVE AMORTIZATION — >> THANK GOODNESS.

>> SO YOU'RE BASICALLY SAVING EVERY TIME YOU MAKE A MORTGAGEPAYMENT.

THAT'S THE BEAUTY, ALMOST LIKE A401(K) FOR CERTAIN PEOPLE.

TEN, 20 YEARS DOWN THE ROAD WHENTHEY GO TO SELL, THAT MONEY CAN FUND RETIREMENT, COLLEGEEDUCATION, AND THAT'S WHAT YOU'RE TRYING TO HELP BUILD ANDYOU HAVE A BETTER SENSE OF COMMUNITY WHEN YOU OWN VERSUSRENTING.

>> Bob: LET'S SAY SOMEBODY'SWATCHING THIS AND SAYING, YOU KNOW WHAT, WE JUST CAME OFF THEHOLIDAYS, WE HAVE ZERO MONEY, WE HAVE A LITTLE BIT OF DEBT, A LOTOF DEBT, WE HAVE OUR CAR PAYMENT, WE'RE MAKING OUR RENT,BUT WE'D LIKE TO BUY INTO THE AMERICAN DREAM.

WHAT DO THEY DO? >> JOE AND I ARE GOING TO STARTBEGINNING IN JANG HOLDING SEMINARS FOR SOME OF THEWORKFORCE EMPLOYEES.

WE'VE BEEN IN TOUCH WITH THEPUBLIC SCHOOLS, THE BENEVOLENT FRATERNAL ORDER OF POLICE, HRT.

OUR INTENT IS TO GO TO THEM, SHOW THEM THESE ARE THE STEPSYOU NEED, THE CREDIT COUNSELING, THE CREDIT IMPROVEMENT YOU NEEDTO MAKE FOR THE YEAR BEFORE YOU EVEN THINK ABOUT THIS ASINTENTLY AS YOU'RE THINKING ABOUT IT, BUT WHAT WE ARE TRYINGTO DO IS EDUCATE AND ASSIST BECAUSE IT IS A VERY TOUGH ROADTO GO WHEN YOU'RE — WHEN YOU'VE GOT THAT, BUT AS JOE SAYS, THEYMAKE THEIR PAYMENTS EVERY MONTH.

WHEN YOU DO THAT IN A HOME AND ILOVE HIS ANALOGY THAT IT'S A FORCED SAVINGS PLAN.

WHEN YOU BUY A HOME, YOU INVEST IN THAT HOME.

THE NEIGHBORS ARE HAPPIER THAT THAT HOME IS SOLD RATHER THANRENTED.

IT'S MORE PLACID FOR THECOMMUNITY AT LARGE.

>> Bob: SO SHOULD THEY CALLTHEIR FRIEND THE REALTOR AND START DRIVING AROUND OR SHOULDTHEY START SAVING FIRST? >> REALLY, WHAT THEY WANT TO DOIS DO A FINANCIAL CHECKUP.

I MEAN, YOU WANT TO SEE WHATTHEIR CREDIT IS.

>> Bob: NOW YOU'RE SOUNDING LIKEMY WIFE.

>> YEAH, I KNOW.

YOU WANT TO FIND OUT WHERE YOUR CREDIT IS, WE NEED TO LOOK ATYOUR DEBT-TO-INCOME RATIO, BECAUSE WE DON'T WANT YOU TO GETYOUR HOPES UP, HARVEY SHOWS YOU THE PERFECT HOME, BUT YOU CAN'TGET THE CREDIT.

JANUARY IS A PERFECT TIME.

YOU FILE TAXES AND GET THE REFUND, SO INSTEAD OF TAKING ATRIP OR — MAYBE ME TAKE THAT MONEY AND PAY OFF A CREDIT CARDAND NOW YOU CAN QUALIFY AND SO NOW INSTEAD OF A 600 CREDITSCORE, YOU HAVE A 650 CREDIT SCORE AND YOU MIGHT BE ELIGIBLEFOR OTHER PROGRAMS OUT THERE WITH A LOWER INTEREST RATE, SOIT'S A GOOD TIME TO PLAN WHERE YOU'RE GOING TO BE.

AGAIN, SOME OF THESE — IN ORDER TO GO FROM RENTING TO OWNING,SOMETIMES IT TAKES A YEAR, TWO YEARS OF, HEY, WE REALLY GOTTO — IT'S LIKE GETTING A BAD GRADE IN SCHOOL.

TO TRY TO GET YOUR AVERAGE BACK UP IS VERY DIFFICULT, SO WHENYOU ARE LATE ON A COUPLE CREDIT CARDS AND MAYBE BECAUSE OFMEDICAL REASONS OR WHATEVER THE CASE MAY BE, IT TAKES TIMESOMETIMES TO HEAL THOSE AND THAT'S WHAT WE WANT TO TRY TOHELP DO SO WE CAN GET YOU OUT OF RENTING AND INTO OWNING THATWAY.

>> Bob: YOU MENTIONED A YEAR.

THAT'S — WOW.

SO IF YOU'RE INTO AN APARTMENTAND YOU HAVE A LEASE OR SOMETHING LIKE THAT, THEN REALLYLOOK AT THAT FIRST? >> CERTAINLY LOOK AT THAT FIRST,BUT I THINK IT COMES DOWN TO GETTING SOME UNDERSTANDING OFWHAT THIS PROCESS IS AND YOU JUST DON'T GO BUY A HOUSE.

IT'S A LONG INVOLVED PROCESS AND WHEN YOUR CREDIT IS SHAKY ANDYOU'RE NOT SO SURE — YOU'RE NOT GOING TO PUT YOUR FOOT IN THEWATER AND AS JOE SAYS, A GOOD TIME TO DO THAT.

WHAT WE TRY TO DO IS COME IN, WHETHER IT'S A CHURCH GROUP OR ASCHOOL GROUP, WE WILL COME AND TALK TO YOU ABOUT HOW IT'S DONE.

JOE WITH HIS DEEP KNOWLEDGE OF THE MORTGAGE BUSINESS AND THEVHD AND SOME OF THE LOANS AVAILABLE AS WELL AS CREDITCLEAN-UP, AND ME WITH THE PROPERTIES BECAUSE I KNOW WHERETHE PROPERTIES ARE.

THIS IS PART OF OUR WORKFORCEPLAN, WE WANT TO INVENTORY THESE PROPERTIES SO PEOPLE CAN LOOK ATTHEM.

SO THEY'RE NOT HAVING TO DRIVE25 MILES OR 50 MILES TO THEIR SCHOOLS TO TEACH.

ONE BIG THING ABOUT WORKFORCE IS PROXIMITY TO THE JOB, AND INTHIS RESORT AREA, WE HAVE FROM WILLIAMSBURG DOWN THE OUTSTERBANKS, IT'S VERY — OUTER BANKS, IT'S VERY TOUGH TO FINDAFFORDABLE HOUSING THAT'S CLOSE BY WHERE YOU'RE EMPLOYED.

>> Bob: THE REAL LESSON LEARNED, IS DON'T LET THE EMOTIONS GET INTHE WAY, BUT GET WITH THE PROFESSIONALS.

>> AGREED.

IT'S A SCARY PROCESS, WE'VE ALLBOUGHT, SO IT'S NOT A WALK IN THE PARK, SO YES, WE'RE HERE TOGUIDE YOU AND ASSIST YOU.

>> Bob: IT'S KIND OF COOLBECAUSE IF YOU DO BUY, THEN YOU HAVE THE MAJOR DECISIONS, SHOULDWE CHANGE THE COLOR AND YOU CAN HAVE A DREAM.

AND CLEAN GUTTERS ON WEEKENDS! THANKS A LOT.

IT'S NOT THAT HARD.

IT'S A MATTER OF DOING YOURHOMEWORK AND GETTING WITH A FROERGE AND GETTING READY TOCLEAN GUTTERS.

THANK YOU FOR JOINING US.

Source: Youtube