Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
Should You Allow Buyer To Rent During Closing?
It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed. You're a bad guy if you refuse and often in hot water of you agree. Here are the potential problems with renting before closing: 1. Buyer is in the home for two months and then the potential lender decides the buyer can't qualify for the mortgage loan. Now that's bad news! 2. Buyer is in the home for two months... gets a bad case of buyer's remorse and wants out of the deal. Now that's bad news! 3. Buyer is in the home for two months and comes to the closing table with a long list of needed repairs he has discovered during residency. Now that's bad news! 4. Buyer is in the home for two months during which time he does serious damage to the property and then disappears. Now that's bad news! Is there any good news? Well, you are getting rent money for those two or so months. Let's check the score card: Bad News = 4Good News = 1 I would say that the investor comes out on the short end of that game. Let's agree that the only time you rent during closing is if you are in dire need of that rental income. If you must rent then you must carefully prepare a lease agreement. No handshake deals allowed! If the buyer/renter refuses to close the deal for any reason, the only way you can get them out of the property is if you have a rental agreement that gives you the right to evict. It must also be a short term lease, so there is no misunderstanding about the buyer/renter remaining in the property if the deal goes bad. In the purchase agreement you must spell out exactly, in a dollar amount, what repairs or improvements you will pay for. The agreement should indicate the buyer has had an inspection period and is buying subject to your limits on repairs and costs... now and in the future. If legitimate defects are found in the property during the rental period you can negotiate a solution. You must collect sufficient security deposit to cover rent and potential damage the renter/buyer might inflict upon the property. Look, if for some reason you feel you must accommodate the buyer during the closing period? pay for a motel room. Chances are it will be far cheaper in the long rund. Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com
MORE RESOURCES: |
RELATED ARTICLES
10 Frequently Asked Short Sale Questions 1. What happens to the seller's credit rating when they allow an investor to short sell their property?What typically happens is the loan will show up as "paid" on their credit report; however there will be a notation that says "settled for less than originally owed" or something along these lines. An Estate Planning Primer An estate plan can be designed by clients and their professional advisors to achieve the client's personal and financial objectives. Or, it can be an arrangement imposed upon survivors by state intestate succession laws if someone dies with¬out a valid, up-to-date will. Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit One of the quickest ways to real estate profits is through preforeclosures. What is a preforeclosure, exactly? A preforeclosure takes place from the time the bank gives notice of default to the time the house sells at auction. Fixing Houses: Using Psychology for Profits Real estate investors who specialize in fixing houses for profit gain new insights from Interior Design Psychology ideas. Increase your profit potential in the new buyer's market with these new transformation strategies. Ten Creative Financing Techniques Do all the creative financing techniques you hear about really work? Yes, actually. They probably have all worked somewhere for someone at least once. Planning for Real Estate with Estate Planning One of the most important considerations you will need to make in regards to your real estate holdings and your estate includes tax planning. If not handled properly, your estate could end up getting hit with significant losses due to taxes after your demise. How to Become a Successful Real Estate Developer Real estate investment and development has never been a more popular pastime or career changing challenge; if you would like to learn seven secrets for consistently successful real estate investing through development or you would like to know how you can continue to profit from property even if the market takes a downward turn just read on?1) Do Your Location Homework - did you know that through successful and sustained location research professional property investors actually continue to profit during a market down turn? It's true - whatever the market conditions you can apply their location research approach to your real estate investments and also make consistent profits from property.Take the necessary time to learn all about a town or city you're considering for your next property development purchase and discover where the up and coming areas of that town are likely to be. Should You Buy Hud Homes? Buy HUD homes are sometimes the cheapest option available for a common man to own a house. The fact that teachers and police officers could buy HUD homes at 50% off the market value attracts more potential buyers. The Letting Agents Role Letting agents play an important role in the buy-to-let industry and a good agent can help make or break your lettings experience. So what should you expect from your letting agent?Professional reputationTo attract good tenants, the agent needs to be well established in the local area and have a good reputation. A Beginners Guide to Flipping Houses If you're dreaming of making money in real estate, it's time to stop dreaming and get to work, because making money in real estate isn't just a vague pipedream. It can be done, even by a young and inexperienced person, when you learn how to "flip" houses. Real Estate Investing in Rentals - the $10 Million Real Estate Investing Mistake Renting to tenants is no longer "where the money is" for real estate investing. I became a multi-millionaire landlord in the 1980s by buying $10 million in rental houses. How to Sell Your House by Lease Options Many people buy a house then have to move within a few years, due to divorce, relocation or financial difficulties. Without any equity though, it can be nearly impossible to find buyers and you still have realtor fees to contend with. Understanding Opportunity Cost When Investing In Property While most investors have got involved in property investing because they understand the opportunities to make money through leverage and capital growth or high yields, I still see and hear of many who do not fully understand opportunity cost.Remember anyone that gets into property is usually in it to generate money or income - how many deals/properties you own is insignificant. Practical Advice for Finding Irish Castles for Sale Have you ever wondered what it would be like to live in a castle?Have you ever dreamed of dancing in a grand ballroom that at one time was filled with princes and other nobility?If you find yourself dreaming of this lifestyle, you're not alone. Celtic castles, and all things medieval for that matter, have gotten very popular in recent years. Buying New Construction...How Do I Begin? The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out-weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date. Florida Investment Real Estate and What Are Considerations Before Buying Investment Real Estate, First Things FirstConsidering investing in property? What are some pertinent things to consider before taking this leap? Of all the investment possibilities, investment in land generally produces the most positive results. It is vital, however, to carefully investigate the pros and cons, benefits and deficits of real estate investment. How to Sell Your House For Full Price Many people believe that a real estate broker is needed to sell their house. So they post it with a broker who may or may not sell it and if they do charge exorbitant fees. How to Use Design Psychology to Stage Your Home for a Top-Dollar Sale A new business venture to help home sellers, home staging, assists property owners in preparing their home for the best possible sale. Home stagers visit your home and either tell you how to redesign it or actually do the work for you. Your Home Equity Can Work for You "Use your home's equity to pay off your debt. It's easy and simple, no closing costs!" Every time I turn on the television, commercials bombard me telling me to take out a home equity line of credit. According To Sellers, Silence Isnt Always Golden' When trying to sell a home, silence isn't always golden especially when you're expecting your real estate agent to call. In fact, it's one of the leading complaints among sellers in the real estate market. |
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2012 |