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Your email address will not be published.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...
  • This field is for validation purposes and should be left unchanged.
Follow Us

7 hours ago

Maxine & Marti Gellens, Berkshire Hathaway HomeServices

We’re getting our clients top dollar for their properties. We had 40 offers, countered the top 8 and opened escrow today on this amazing opportunity in Encinitas. If you’re considering selling, contact us! We’ll share our strategy on how we can deliver the same superior service for you.

#encinitas #encinitaslife #encinitashomes #encinitashome
...

View on Facebook

4 days ago

Maxine & Marti Gellens, Berkshire Hathaway HomeServices

PRICE IMPROVEMENT
$859,000
This beautifully appointed townhome rests in a tranquil location within The Villas of Whispering Palms. A gated entry courtyard welcomes you into elegant living spaces offering engineered wood floors, a fireplace, generous granite kitchen with an abundance of cabinetry, and a slider opening onto an enclosed patio perfect for lounging or dining al fresco. Upstairs you will find all 3 bedrooms with vaulted ceilings including the master suite with a spacious walk-in closet, fireplace and private balcony.

4062 Avenida Brisa
Rancho Santa Fe, CA 92091
3BD | 2BA | 2,062 sq.ft.

#whisperingpalms #rsf #ranchosantafe
...

View on Facebook

7091 Caminito Valverde
La Jolla, CA 92037

4 Beds | 3.5 Baths | 2,618 SqFt

Ocean views and a tranquil, park-like setting surrounded by vast open space are yours to enjoy from this exceptionally private home in La Jolla Summit. Upon entry you’re welcomed by sun-filled living areas with an inviting indoor-outdoor flow consisting of a spacious living room with a fireplace, formal dining room, and an architecturally designed chef’s kitchen adjacent to the family room. All 4 bedrooms are conveniently situated upstairs including the generous master suite showcasing vaulted ceilings and an incredible view of the ocean. Serene outdoor spaces enable effortless entertaining from its extra-large, low maintenance yard with four separate patios and a hot tub. Residents of La Jolla Summit benefit from community amenities comprised of a clubhouse, 2 pools, 3 tennis courts, a fitness center, kid’s playground, basketball, indoor racquetball, an indoor spa and LOW HOA fees. Enjoy easy access to the freeway, beaches, as well as Village shops and eateries. This is a rare offering in an enviable location that only one family will be lucky enough to call home.

#lajolla #lajollarealestate #lajollasummit #sandiegorealestate
...

View on Facebook