renters or buyers

They are doing both... the people on the losing end who jumped on the "my house is a ATM" bandwagon are renting because their house was foreclosed. The people who couldn
't afford a house a year ago and all the smart investors are starting to move in very quietly.

It will take a while for the market to get back up with all the inventory, but it will go up. Buy the dips, sell the rallies. Right now we are in a VERY big dip.

In my "farm" renting is great. They don't sit on the market very long, and are at a great price for people like me. It is a buyers market right now for me in my location. So if I can afford to sit on a property and rent it out, then I may have a bigger return on my investment later on when its a better market for me. I guess what I'm saying can you afford to rent out property, or do you need to sell it right away? Talk to your realtor because they will know better than anyone on here. It is going to depend on one huge element LOCATION, LOCATION, LOCATION. You realy need to do your research; check the court house, bankers, realtors, other people renting out property, town website, city meetings, city publishings and many others.

i am seeking some help with finding some financing with poor credit. also, why do you see "no money down" and then everyone wants to work with people with money? What techniques are available besides assigning the loan? i need some guidance, in this area please repond.

Thanks,

Patty12

With the credit crunch going on it can be difficult to get it unless it is on a property with a ton of equity built in (finding really good deals well below market), good credit and/or good assets.

If you don't have much to put down look reassign or tax sales. They may sound as glamorous, but of you put in the effort you can start there and build on it. The way you will succeed in this game is like any other career, you start small and put in the time and dues and work your way up to being able to do the deal like Dean Graziosi does. If you are fortunate enough to have the money to leverage when you get started then it is just another leg up. If you don't you will need to get a little more creative with your execution.

Make realistic goals and go from there. Like maybe say within a couple months you want to have at least one tax sale or reassign under your belt. Anything that "pays off" in one way or another takes some dedication.

You want to buy and rent. If you have a buyers market it should tell you there is penty of houses on the market. What I understood from Deans book is there is a lot of people renting because they cannot afford to buy. The rental market is good in a down market. If you are going to buy to rent, you have to list the property wih a realtor to rent it out for you. You have to figure at least four monthly mortgage payments to allow enough time to find someone to rent your acquired property. If you rent it out sooner you are ahead. I am thnking to buy a townhouse because the rent is most of the time less than a single family, and since I will finance the property I would structure the loan to be in the range which can be covered by the money coming in from the rent. In other word I would try to make it so I can breakeven and not have to pay out of pocket. This way in a down market I can look for the property to appreciate when the market comes back. This is conservative thinking, I will try to have apositive cash flow that Dean talks about which seems easier said than done.
Ali

RENTERs rent not because they can not buy. RENTERs rent because they are afraid to buy. I have five properties and four of them have tenants who love their house, love me as their Landlord and love renting. They don't realize that they ARE buying. They are buying a house for me!

It sounds cold and calculating, but, to them, I am doing what they see as the hard part. I am dealing with the mortgage and the stress and the maintenance... etc...

The bottom line: No matter what the market, you will be able to find RENTERs.

Good Luck and TAKE ACTION!

Advice needed.....I am new to this game and to the website, but very motivated to be successful. I live in the Northeast where the cost of living is very high. I have homes in the area that have been up for sale for months even up to a year, year and a half. The rental market seems to follow that same model. Obviously, the supply far outwieghing the demand in both markets. What stategy should I pursue to not get stuck with the bill.

Put an ad in the paper offering a rent to own. If it is a fair offer then your phone will ring. Be creative with your ad. Oh yeah, fire your agent trying to sell your properties or lower your price on them. Offer things like seller will pay closing costs, new appliances, and a bonus to selling agent. Good luck.

It's a PHENOMENAL time to buy and rent. Proprties are cheap. Banks are dumping them. Values are out there like no time in my life.

And there are MANY more renters than ever before. The people who lost their homes are now renters. With banking underwriting MUCH more stringent, people who would have bought a few years ago are now renters.

CBR you must have read my mind on that one. The ame thing is going on here. That is why the leas option is starting to catch on.

With the way the lending market is, if you can get rental property this is a great time to buy. The lending standards have tightened up quite a bit, and because people can't qualify to buy a home they have to rent. I think this is a major reason why the rental market is such a good market to get into now if you can.

Eric Real Estate Coaching Consultant

Worded very well! I'm learning. Thanks from all.

I am going to follow some advice from a friend that i consider on this site. and that is about buying duplexes and triplexes. Live in one side free, and rent the other or others out. It does sound cold and calculating but actually it is not because someone always has to have a place to live and not everyone has perfect credit at the time. Get established then make your move. I am sure it is hard or will be hard to contend with stress, maintenance and a variety of issues. I am getting ready for that. Because When i sell my house I am going to follow this person's advice because i believe in him. Cindy.

Seconding this. I agree 100%.

you wouldn't be following my advice would you? lol, i think i told you about renting the tri-plexes and duplexes, right? YOUR HERO,SULLY.

Sully, look in the bottom right-hand corner of your screen under Users online. You will always see a list of users that are currently online. Also, if you look at any of the person's posts or in their bio, it will tell you if the person is currently on or offline. Sorry for butting in. Just thought I'd share that.

what a pleasant surprise, thats right, my fault, i tend to froget that from time to time, SULLY.

I think that you can always find reters? Its the quality of renters that are most important these days. So many owners now are having trouble with renters. The same thing is happening with tennents like the forclosures. Renters are behind with rent four and five months. You have to be carefull and evict them. The contracts you have for tennents are very critical. You have to remember that it cost money to evict. I hear renters also just move out overnight leaving without notice. Its gotten so bad they will leave furniture and belongings behind. I have been in properties that the renters come back and live illegally in the property.

But I think there are enough people wanting to rent now, that if you check your references you should be able to find good ones. Of course, it depends on where your property is located, too, usually.

Rina

Hey D,
People are always going to need a home whether it's renting or buying, regardless of what's happening in the market, especially if they're good homes @ a great price!
It's really simple... If you enjoy being a landlord or have a good management company then rent them, if not then lease option them. Some people aren't cut out to be landlords, there's alot more responsibility involved, maintenance, leaky faucets, overflowing toilets @ 6am, etc. So in that case, the lease option is the best way to go... You're only responsible for major repairs and you make money up front, every month and at the end when they buy it or you just renew and do it all over again!
I've done both and I must admit the lease option wins hands down, for me anyway because I just don't enjoy maintenance and repair calls at all.
So do what you enjoy otherwise it just becomes another j.o.b. =)

Yeah I have read up more on L/O and lease to purchace. Are there any posts around explaining the difference between the 2 and explaining on how to use them

thx

You gave me good advice, but something else in mind first. will fill ya in when i know 4 sure

here D, basically the LEASE OPTION as i'm sure you already know, you lease the property for usually between 1-3 years, with or without rent credit, you would also agree on a price for the property now, instead of later in the lease, seller & buyer must also decide when the option engages(year 2 or 3?).

LEASE PURCHASE: major difference here is with the purchase, well it's exactly what it says, your leasing for a specified amount of time and then like the option within a time frame agreed between seller & buyer(year1-3), buyer MUST then purchase the property when the purchase part engages. Differnence is RENTER MUST purchase the property, SULLY.

LEASE PURCHASES are pretty rare these days, especially when theirs the LEASE OPTION, which offers so many more options to each party involved, it makes the LEASE PURCHASE obsolete, YOUR HERO, SULLY.

You are so right Elena. Lease purchases are every where in my area and in Maryland and Virginia as well. I got the paper today and there is a slew of them. You are so right, people always need a place to live and why rent when you have the option to purchase at the same rate. I would like to be a landlord. My home has no problems so i wouldn't have any worries about fixing things.

on.

thx

I never had any problems renting my properties, at first anyway. I was a great landlord, I always fixed anything within a 24 hour period. But after a couple of years with tenants I got tired of always being on call and it got much harder when I moved to a different city. I saw my mom go through lots of bad tenants, renting out the other half of her duplex to pay her mortgage, and the older she got the worse it was for her. After doing a couple of lease options I just prefered it better than renting, that's me though. Like I said not everyone's cut out to be a landlord, and I'm just not.
I like the idea of owning nothing but controlling it all...
Elena

I dont see a lot of difference. What remedy does the seller have if the renter reneges on a L/P ie they DONT purchase the property??

For a L/O, the option money is forfeited. I would assume it would be the same for a L/P???