Rent to own a house is also called lease to own house (or a whole slew of other phrases… like “lease option”, etc.). So how does rent to own homes work in Colorado Springs and other parts of Colorado? How Does Rent To Own Homes Work?: The AgreementIt is kind of similar to a car lease. In this kind of arrangement, the renter rents a house from the owner of the house and pays monthly rental fees for living in the house. After a given period of time, usually three years or so, the renter can decide to purchase the house at a price that the renter and owner of the house agreed upon at the start of the rent to own agreement. Of the monthly rent paid to the owner, a fraction can sometimes go towards down payment of the house depending on the local laws and guidelines. Sometimes applying part of the monthly rent to the purchase price is now against the law because of a law passed by Congress called the Dodd Frank Law. The Rent To Own Contract Agreement – How It Works Here In Colorado SpringsThe contract the buyer and seller draw up should be very clear. You should understand the nature and terms of the contract properly before signing it. Make sure you ask the seller lots of questions if you’re not clear about anything at all. This arrangement has got advantages for both sellers and buyers alike… but also some huge benefits. So understand both the pros and cons so you can make a great decision for you and your family. The Financial Parts Of The Rent To Own AgreementFirst, the seller has to set the purchase price and monthly rent for the house. The Monthly Rent The purchase price is usually retail value for the house in today’s market. The monthly rent is usually a bit higher with a rent to own/lease option agreement than if you were to just rent a house normally. Why? Because you’re paying for the ability to purchase that house at the end of the agreement and you’re locking that house down so others can’t purchase or rent it during the entire term of the agreement. The Purchase Price The agreed and signed price and rent is settled and locked during the entire rental period of time, which is usually between one and three years. The agreed price doesn’t change the agreement based on market prices in Colorado Springs, whether they rise or fall. That’s one of the big benefits of buying a house here in Colorado Springs with a rent to own… that you can lock in to buy a house at a price today… and not have to buy the house for 1 – 3 years… and that purchase price won’t go up over those years. The Option Fee/Upfront Payment There is an option fee that the buyer pays the seller. It is a set amount of money payable to the seller by the buyer before you move into the house. This amount can really vary based on who you’re working with and the house price… but a rule of thumb is usually 1-5% of the total house purchase price is what you can expect to pay upfront to enter the agreement… and this payment is usually non-refundable if you decide to NOT buy the house at the end of the agreement. This option of buying a house in Colorado Springs with a rent to own agreement is very good for buyers who would otherwise be unable to purchase a house or whose credit score wouldn’t meet the required threshold for a mortgage. For sellers like us, the rent to own opens up the potential “buyers pool” so we can help more people get into great homes. For buyers, it lets you work toward home ownership and have that sense of pride you feel when you own a home. The End Of The Rent To Own Agreement… What Happens? Of course, the idea of getting into a rent to own home in Colorado Springs Colorado is that during the rental term… you improve your credit and financial stability so you can get a normal home loan at a bank. So during that whole period… you should be really working to improve your credit… save up money… and work with a local Colorado Springs mortgage broker or bank to get pre-qualified BEFORE the rent to own agreement expires. At the end of the rental period, you as the tenant/buyer have the choice to either buy the house at the price in the agreement… or you can walk away and not buy the house just like a normal rental house. If you choose not to buy the house, no biggie at all. You can move out of the house and onto another house… or under special circumstances, you may be able to update the rent to own agreement to give you a bit more time to get qualified for a bank loan to buy the house. With our local Colorado Springs Rent To Own Program, our ultimate goal is to help you reach your goal of home ownership. So we can be flexible often times if you need an extra few months to get things lined up financially and with the bank to close on the house. Just like in any other way of buying a house in Colorado Springs, there are mutual pros and cons for both the buyer and seller. So just do your research… keep browsing this website and check out our Frequently Asked Questions page… or give us a call anytime at (719) 286-0053 or shoot us an email on our Contact page to chat with us and our local rent to own program. Last… have you found the Colorado Springs rent to own house that’s perfect for you yet? If not, join our Early Property Alert List below to get email alerts quickly when we have new rent to own houses in the Colorado Springs, [maket_state] area available. See Available Rent To Own Houses In Colorado Springs, Colorado Here >>via WordPress https://ift.tt/2Ng38bp
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How To Buy Investment Property With Bad Credit For Savvy Colorado Springs Investors 4 Ways8/18/2019 For most people, a house can be a costly acquisition. Chances are, the house you live in is one of the biggest purchases of your life. And the real estate investments you acquire may not cost as much but it’s possible that you might be thinking about using loans and mortgages to buy those investment properties. You might be wondering, like a lot of investors, how to buy an investment property with bad credit for savvy investors in Colorado Springs. Fortunately, there are at least 4 simple ways to acquire investment properties even with bad credit. These 4 Ways Describe How To Buy Investment Property With Bad Credit For Savvy Investors In Colorado SpringsStrategy #1. Use the money you already have. Many investors have money they may not even realize. For example, you might have equity in your home or business that you can borrow against, which you might not need an additional loan. Or you might have money in your IRA or 401(k) that you can invest with. Few people realize that this is even possible – but it is! If you want to talk to us about how to invest with your IRA or 401(k), just give us a call at (719) 286-0053. Strategy #2. Use seller financing. Seller financing is when you acquire a property but instead of getting a mortgage through a traditional lender (like a bank) you instead get financing from the seller themselves. You simply pay the seller your “mortgage payment” every month until the house is paid off. The seller may not require good credit because ownership of the house would revert back to them if you default on your financing. Strategy #3. Partner with another investor. One very common strategy is to find another investor who has good credit and then partner with them. You combine their good credit with your skills, sweat equity, network, or some other contribution, and you split the cashflow between you. Strategy #4. Find a cash buyer. This is an advanced way if you’re looking how to buy an investment property with bad credit for savvy Colorado Springs investors. A cash buyer is someone who has access to the money right now, perhaps sitting dormant in an account or maybe in one of the ways described above, such as in an IRA or 401(k). In some situations, you can acquire a property and then sell the property to them without using any of your own money (this is sometimes called “wholesaling”). There are other ways, too, but this is a great way to invest in real estate even if you have no credit. Summary: How To Invest With No CreditNo credit? No problem. Real estate investing is one of the ways that you can invest even if you have no credit or bad credit. You just need to get creative, connect with the right people, and put deals together in different ways than you might be used to… but credit is not needed. If you want to talk to us about how you can invest in real estate even, no matter what kind of credit you have, click here and get in touch.via WordPress https://ift.tt/2ZeqvUW It’s not uncommon to see craigslist adverts that provide people with a chance to own a home with just a small payment upfront and then “earn your way” into a house over time. There are a few names for that… but “rent to own”, “lease to own”, and “lease purchase” are a few. If you’re looking for a quality rent to own house in Colorado Springs… you may be wondering how you can find free rent to own home listings in Colorado Springs to see if you can find a house that’s right for you. First, if you’re not sure what a rent to own house is… or the process… keep reading this website and check out our FAQ section. Renting to own a local Colorado Springs house can be a great option for people who are struggling to qualify for a home mortgage because of their credit or not enough cash for a large down payment. This option benefits both the buyer as well as the seller because the former gets to move into his or her dream home quickly while the latter gets a series of long term payments and is able to sell their house to a broader pool of potential “tenant buyers”. Finding the right rent to own home listings is Colorado Springs can be tough sometimes. What we’d suggest is that you do your research and get on a few lists that show you local rent to own houses in and around Colorado Springs. Places you can find these lists of available Colorado Springs Colorado rent to own houses…
A Bit More Info About Renting To Own A Colorado Springs House…The tougher lending standards and the declining buyer market are pushing sellers of houses in Colorado Springs to help potential home buyers get into houses even though they can’t qualify for a bank loan. The way our rent to own agreements work is, you as the buyer, are given a chance to rent the property for a given period of time with an option to buy the house sometime in the future…. usually 2 years from today. That gives you as the buyer enough time to evaluate the neighborhoods, the house, and improve your financial situation before making a long term commitment to owning the property. Families can also move into the property even when they don’t have adequate financing power. We love working with rent to own tenant / buyers because we get a tenant who has a long term vested interest in the property and we get a consistent rental payment while you improve your credit so you can get a home loan at the end of the agreement to buy the house. There are pros and cons to renting to own a house… which we go over on this website and in other articles… and it’s advisable that you understand the pitfalls which comes with this form of home ownership… along with the huge benefits we can offer with our local rent to own / lease option house program. So, what are you waiting for?Now that you know how you can find free rent to own home listings in Colorado Springs… now it’s time to start finding houses that fit what you’re looking for. If you want to see what Local Colorado Springs Rent To Own Homes we have available… go here >> If you have any questions about the process or just want to chat about your situation… give us a call at: (719) 286-0053 We’re here for you and we look forward to working with you! via WordPress https://ift.tt/2NdbzUK What Insurance Should I Have For My Rental Property In Colorado Springs? An Investors Checklist8/16/2019 Investing in real estate is different than investing in Wall Street stocks. Stocks are speculative, and they’re also a “paper asset.” The stocks might go up and down but there isn’t much that can happen to the “financial instrument” itself (especially since they’re stored electronically instead of as stock certificates now). Real estate on the other hand, when done properly, provides steady cash flow and is a real asset… which means something could happen to your real estate. The cash flow is nice… but you need to protect the real asset (and yourself). That’s where insurance comes in. Insurance is like a “reset button” to help you recover financially from a loss. If you invest in real estate, maybe you’re wondering, “What insurance should I have for my rental property in Colorado Springs?” Here’s a checklist of insurance that you may need: Checklist: What Insurance Should I Have For My Rental Property In Colorado Springs?There are many possible insurance products that can benefit you but the primary ones are below. (You may choose to purchase the relevant ones separately or you might want to ask your insurance broker if they have “landlord’s insurance” since some insurance companies will package the right ones together for your convenience.) Property Insurance. Property insurance should protect you financially from many of the events and natural disasters that may damage your property. All policies are different but you might get property insurance that covers you for fire, lightning, wind damage, etc. If you live in an area prone to a certain type of natural event (such as floods), you may need to acquire an additional “rider” for that special situation. Liability Insurance. If a tenant or visitor injures themselves on your property, they may sue you to help pay for their medical bills and loss of employment income. Liability insurance helps to protect you from the financial burden if a lawsuit goes against you. Tenant Insurance: Tenant insurance isn’t something you need to get for yourself but we’re mentioning it here because it’s something you should urge your tenants to get. Tenant insurance is insurance for tenants that will cover any financial loss of their belongings. Here’s How These Insurances WorkAs an example, if a fire starts, your property insurance may cover the repairs to the property, the liability insurance may cover you if the tenant chooses to sue you, and the tenant insurance will cover any damage to the tenant’s belongings. Get The Insurance You NeedThere may be other insurance to consider as well, including insurance for your business in case you are injured and unable to work, or there might be other insurance available (such as those through your credit card or bank) to cover bills if there’s a loss of income. Insurance needs are different for every situation; we’ve covered the 3 basic insurances above to get you started but you should always talk to an insurance professional who can assess your needs based on your individual situation. If you want to get an introduction to an insurance broker we trust and work with, click here now and enter your information, or phone us at (719) 286-0053 to get in touchvia WordPress https://ift.tt/2KQCRO4 One of the first questions we get from potential tenant buyers of our local Colorado Springs Colorado rent to own homes / lease option homes is “how do rent to own homes work in Colorado Springs?” With a flooded real estate market, especially since the bubble burst of the mid-2000’s, rent-to-own homes have become a popular option for people who are deciding whether to purchase or rent a home. Renting to own offers advantages to both buyers and sellers. For the seller, they have steady income to make steady mortgage payments, while the seller has a period, typically a year or two to organize his or her finances and secure financing to buy the house. The Local Rent To Own House ProcessRenting a home to own a house is a relatively straightforward process, though many people are confused. A common misconception is that the renter can live in the home and pay rent over a period of 15, 20, or 30 years, then own the home. It’s slightly more complicated that that. But here are the basic elements of a rent to own agreement. • The buyer and seller draw up an agreement, covering all terms of a rent-to-own agreement. • This contract will state the monthly rent, and a set period of time. • The renter will have the option to purchase the home at an agreed upon price at the expiration of the agreed upon time period. By giving a potential buyer a year or two to get their financial house in order, the seller can continue to make mortgage payments on the home, while living elsewhere. This is beneficial to the buyer, as if they’re sure that they can acquire financing, they can usually begin customizing the home to meet their needs and preferences… essentially treating it like you own the house (because you may own it someday!) and having that sense of home ownership during the process. How Does The Monthly Rent Work With A Colorado Springs Rent To Own House?Really it depends on the location of the house (there may be different laws that dictate what you can do in different states) and any new federal guidelines that may come out that may limit what the property owner of the rent to own house may do. But the standard guidelines of a rent to own house are pretty simple.
So, for the question of “how do rent to own homes work in Colorado Springs“… well that’s the basic process. While there are lots of benefits of renting to own a home here locally… every housing option has pros and cons. Just do your research, talk with reputable and experienced companies like HBR Colorado who can walk you through the local Colorado Springs rent to own house process… and make the smart financial decision for you and your family. Many people choosing rent-to-own may have past credit problems, or may just be unsure if purchasing a home is right for them. If that’s you and you want to look into the rent to own process and even see the available rent to own / lease option houses here in Colorado Springs Colorado, click the link below and fill out your basic info to get on our Colorado Springs rent to own home list. In an era of uncertainty in the real estate market, many Americans are finding that rent-to-own homes provide them with both flexibility, and the option of purchasing a home at the end of the term. By understanding how rent-to-own homes work, you can position yourself to take advantage of the many benefits of renting to own, and realize the American dream, despite past credit problems. Sign up below to see our latest Rent-to-own homes! Talk With Us About The Colorado Springs Rent To Own Process at (719) 286-0053 or |
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June 2022
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