Presented By:

Investors a Critical Part of Real Estate Recovery

News | 10th May 2012

Many areas of the U.S. are seeing continued inventories of foreclosures and REOs that are keeping local home prices down. In many markets, such as Phoenix, Las Vegas and Tampa, investors are out in droves looking a single family homes. Once shunned by the real estate investors, the record low home prices in some area represent an opportunity for many investors looking to improve returns. Many investors are purchasing homes, rehabbing them, and renting the or using lease-purchase options to get consumers into these homes. The investor hopes that the tenant will become a future owner of the home by offering a creative option that is not available to a consumer who is not able to get a mortgage.

Would-be buyers are being stymied by lending climate that is looking for stellar credit scores and down payments above 10%. These investors recognize that there is a creative way to put people into homes that is not being satisfied by banks. Banks are happy because investors want to pay cash, and are interested in buying multiple properties or large portfolios of properties. Experts estimate that 25% percent of all home purchases were made by investors in 2011. Many of these properties are being turned into rentals to satisfy the increased demand for rental homes.

Before entering into an agreement with an investor for a home, or signing a lease-purchase, it is a good idea to consult an attorney or real estate agent. Anyone purchasing a home or signing an agreement to lease-purchase a home should have the agreement reviewed by an expert. Most times investor’s lease-purchase agreements are written to the benefit of the investor-landlord, and may involve steep penalties and additional costs if the agreement is not followed exactly. A local realtor may be able to answer basic questions and advise the consumer whether they are paying too much for the property.

Leave a Reply

Your email address will not be published. Required fields are marked *

Share & Print This Post
Choose A Topic Below

How much is your
Home worth?

Looking for a home? Talk to an Area Expert...
Follow Us

We’re celebrating Marti’s birthday and she’s modeling one of her gifts! Happy dance! ...

View on Facebook

OPEN Saturday & Sunday 1-4PM
2131 El Amigo Road
Del Mar, CA 92014

Beds: 3 + Office | Full Baths: 2.5
Ocean view contemporary with vaulted ceilings In Del Mar, close to the Beach and Village. This great home has large front and backyards with multiple view decks for relaxing and recreation, an entire upstairs ocean view master retreat featuring an office and separate bonus room with stone fireplace. The entry level is comprised of 2 additional bedrooms, a large family room with French doors and a quaint kitchen that opens up to the backyard. Enjoy this home as is or add on and remodel as you wish!

View on Facebook