RENT TO OWN PHOENIX, ARIZONA NICHE
Foreclosures continue to dominate the real estate market. Do you ever think what happens to a person after they have been foreclosed on? They have to live somewhere else. I receive phone calls on a daily basis from people looking for lease option homes. I host a very popular web site www.JustRentToOwn.com. I am experiencing many phone calls on this subject. It is a great real estate niche that I have developed over the years. Here is my tag line "Credit Scary, Call Harry." People love it. They say, "Harry, my credit is scary so please help me." Real estate is all personal contact.
I have developed a database of people seeking lease options and a database of owners looking for lease option candidates. Voila, I bring people two people together to receive compensation once we have a solid deal. It is a Win-Win for both sides.
Please Review My Seller Beware Checklist
- Seller will need to conduct full background check on potential lease option candidate including employment check and three reference checks with name and number
- Insist on using your contract with detailed real estate language
- Set the price where lease option candidate will be able to purchase the house in 24-36 months. It must be a Win-Win for both seller and lease option candidate
- Treat lease option candidate as a homeowner. For example-his monthly payment will be referred as a mortgage payment to have home ownership in his/her mind.
- Seller still responsible for his/her mortgage payment, taxes and insurance along with HOA CC&Rs
- Set up quarterly inspections by third party person to inspect interior and exterior along with changing AC filter and other minor maintenance upkeeps to avoid any major damages to the house
- Lease option candidate is responsible for all repairs of the house
- Purchase home warranty on the property for extra protection. Lease option candidate will be responsible for copay-around $45-55 per visit
- Ensure you use both a residential lease and purchase contract along with a document bringing all documents together for extra protection
- Retain the services of a real estate lawyer or property management company in case one needs to evict a tenant
- Require the lease option candidate to participate in a credit consulting program like the one we offer at Praxis Credit Consulting here in Phoenix, AZ
- Record all documents at title
- Be prepared to modify the terms of the contract if market conditions change in the near future
- Give up to 25% of the monthly payment towards the purchase of the house for incentive to make payments on time
Do you have a niche in your local market? Tell us more about it.
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.