Doing A Rent To Own Vs Just Renting The Property

October 2, 2010 By

Rent to Own is actually a pretty interesting strategy. While it may not seem like it is worth it from a landlord point of view it, considering you risk having to sell the property and all, it actually can be well worth it.

First of all for those of you who don’t know let’s look at what exactly a rent to own contract is. This is a contract that the renter and landlord agree to which allows the renter to eventually buy the house at a certain price.

For instance if you own a $100,000 house and a tenet wants to do a rent to own contract with you, they might agree to say buying the house at $120,000 5 years in the future. Now they have to give you some money up front and rent it out for the 5 years first. Once the 5 years are up they can choose to but the property at $120,000 or to not. If they do it you will have to sell the house and they will have to come up with the $120,000 to buy it.

There are some nice benefits of doing this.

1. Less Late Payments

If you get a dead beat renter you will have to go through the process of kicking them out and finding a new renter. All the renter loses is a roof over his head for 1 night; they will just go somewhere else and become a dead beat over there. However with a rent to owner in the property you can write it into the agreement that if they stop paying they lose the property and because they are actually working to own the property it will affect them more if they get kicked out of it.

3. Take Good Care Of It

Another advantage is that the tenet will normally take better care of it. If the property is just a rental then they don’t care what happens to it. But if it is a rent to own property then they will consider it their house and take better care of it.

3. A Lot Of Demand

Everyone wants to own their own house yet not everyone can afford to do it right now. There are plenty of people who would be willing to get into a rent to own contract as opposed to just being a renter.

Entering into a rent to own contract can be a great alternative to renting a property.

For more on the lease to own agreement or for more on real estate visit Shaun’s beginning real estate investing page. This article, Doing A Rent To Own Vs Just Renting The Property is released under a creative commons attribution licence.

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Advantages And Disadvantages Of Real Estate Investing

September 27, 2010 By

You have probably heard about how real estate investing can be a great way to build your wealth, get some income, and quit your day job, but is it for you. There are a lot of advantages and disadvantages to it.

The fist advantage is pretty obvious; it is the cash flow that you get by investing into rental properties. The idea behind buying rental properties is to buy a house and rent it out. Hopefully the rent covers the mortgage payments and then some.

If you build up a real estate empire and have a lot of rental properties then you could theoretically live off of the income that they produce and just quit your day job.

Another great thing about real estate investing is that it comes with a huge potential. For instance if you buy a $100,000 house for $10,000 down and the house appreciates 10% over the span of a year you have doubled your investment in one year.

As the house keeps appreciating your wealth keeps going up and you can eventually turn out to be very wealthy over the long term.

But even with those two advantages there are some downsides to real estate investing. For starters if you rent out a house there is no guarantee that the renter will honor their agreement and pay you rent every month. If they stop paying you rent you’re out of an income and your asset turns into a liability.

If they do stop paying you rent it could take months to get them out of the house and once they are you will have to find new renters, while the entire time paying the mortgage each month.

There are also other headaches that can come out of real estate investing, such as fixing the property, and dealing with the tenets.

Is it worth investing into? I would say so, there are always going to be ups and downs in anything that you do in life, but if you stick with it real estate investing can lead to a lot of wealth and a lot of financial security in the long run.

For more articles on investing in real estate or other ways to make money visit Shaun’s site about creating alternative income This article, Advantages And Disadvantages Of Real Estate Investing is available for free reprint.

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Information To Keep In Mind Regarding Making A Real Estate Investment

September 13, 2010 By

Although there are plenty of ways you could invest your money, real estate investing has certain benefits. Real estate can actually offer you several different ways to make a good return on your investment.

Turn a house into rental property and earn out of rental fees while your house increases in value. Good income is steady because your tenant is the one paying for your property.

For the most part, real estate tends to appreciate in value, sometimes substantially. Even if prices temporary dip because of other economic factors, it’s almost a sure bet that eventually the value of your home will appreciate over time.

Minor home improvements that don’t cost much can frequently augment the value of your real estate. Make fast and easy money out of this method.

Inflation might also affect your investment, which is why the impact is lessened once your house has been transitioned to rental property. Mortgage payments will remain unchanged for the most part, but you can resort to charging a slightly higher rental fee to your tenant.

By buying a place that needs a lot of work done, you can make lots of money by doing lots of the work on the place yourself. By just getting contractors in to do the things you can’t, you can make way more money.

Believe it or not, there are also tax benefits that can be gained from buying real estate, especially if you will be living in the house for some time. Based on your investment, access to home equity loans may be possible which can be a source of money for other plans.

In order to make the most of your real estate investment, shop carefully before you buy. If you find a great real estate bargain, chances are you’ll stand to make a good profit on your investment.

The individual has been publishing commentary pertaining to investments for the previous two years. In addition, the individual takes pleasure in publishing articles with respect to New York City real estate, such as SoHo apartment and Upper East Side apartments.

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