Rental Markets Are BACK – the time has come!
Rental Markets are Back!
Creative seller financing is what is needed yet, unfortunately most real estate agents and sellers, do not understand it.
For the last several years I have been saying that the foreclosure epidemic would be a good thing for real estate investors. Real estate investors have such a great opportunity when foreclosure rates go up. What opportunity exists? Real Estate investors can buy foreclosures, of course, and they can also benefit from the displaced owners of the foreclosures. They now have “tenants” for their new purchases and their existing properties.
For the most part, from 2000 until early 2007, if you could fog a mirror you could qualify for a mortgage. This easy qualification process lead to two things: 1) The tenant base decreased causing higher vacancy rates and lower rental rates and 2) it put so many people in a situation they couldn’t afford. Many people had no savings and barely squeezed into a home with minimal down. They couldn’t afford any blip in their lives or with their new home. Unfortunately, things happen in life. Also, many people got put into the interest only adjustable rate mortgages. They qualified when it was interest only or a negative amortization loan, but when it adjusted, they found themselves way over their heads financially.
The Wall Street Journal published an article on May 3, 2008 that talked about how rental homes are now going for a premium in many markets around the country. Many home owners that have gone through recent foreclosure are having a difficult time finding a rental home. There is now so much competition of renters added to the market. It also stated that many renters are looking for a new place due to the home they are living in suddenly being pulled out from under them when an owner is in foreclosure. Many of them have little or no time to move. Some have only a few days notice, as they did not know the owner was even in foreclosure.
I have waited for this time with baited breath. I, personally, am excited that lending requirements have tightened. It keeps out many investors that can’t qualify for a loan, AND it keeps many of my tenants renting from me. For investors that can’t qualify for a loan, my lease option and subject to strategies will be key. Over time when the rental rates stabilize, it will drive up property values for landlords/investors. What does this mean for you?
BUY NOW!!!! What are you waiting for? And to find out more about how to turn your rentals into an option learn about lease options.
By: Wendy Patton
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February 27th, 2012 at 12:28 pm
Wendy,
I agree with you about timing of the rental market but I have been out of work for a year and I am about to get into rehabbing to generate some income. Then, once income is generated to stay alive I will start to invest in rental markets. I spent a half a day with a rehabber last week and he rehabs two properties and rehabs to rent a property. He currently has 30+ rental properties. He is showing me the way. Does that make sense?
Thanks for sharing.
February 27th, 2012 at 1:35 pm
Hi,Wendy.
I am requesting the name of a real estate agent in my area that was knowledgeable and worked with lease options and rent to owns. Can you tell me how to find one?
Thanks!
Bernita Mascher (I purchased your course)
February 27th, 2012 at 1:44 pm
yes that is wonderful to work with someone who is an expert in a strategy.
February 27th, 2012 at 1:45 pm
Bernita,
I recommend you call a local real estate office and ask who can help you with a rent to own or lease option transaction. I assume you are looking for a deal for yourself? If you are investing in real estate then find an investor friendly office - like a Keller Williams
Wendy
February 27th, 2012 at 3:25 pm
Hi Wendy in my area of wi houses for rent get filled fast they dont stay vacant long, but selling a home takes a while unless some kind of creative financing takes place, then they sell fairly quick with a down payment
of 3 to 5% although sometimes that is hard to get. As far as home values going up that one is hard to say, it should and im counting on it but im not holding my breath i dont think we have hit bottom yet.
February 27th, 2012 at 3:53 pm
I tried to sign up for thursday webinar but it will not accept. Is there problem with gotomeeting or my computer?
February 28th, 2012 at 1:19 pm
Great article. As an investor and former Realtor it is a lost opportunity, more Brokers don't encourage and promote creative financing.
March 29th, 2012 at 9:23 pm
Amen
March 29th, 2012 at 9:24 pm
So sorry - anytime you have a problem you can always call my office 248-394-0767 - also if you can't attend any of my webinars - do at least register and then if it is recorded we do email you the replay
March 29th, 2012 at 9:31 pm
Joe -
Yes my area is the same way - fast rentals - however, if you call right away and they prefer to sell that is what will appeal to the owner. Also, try working
with agents and looking for those deals that haven't sold in over 90 days. Use my script in the course on Working with Realtors. This will help you talk to Realtors in the way that they understand.
Wendy