Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Should You Allow Buyer To Rent During Closing?


It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.

You're a bad guy if you refuse and often in hot water of you agree. Here are the potential problems with renting before closing:

1. Buyer is in the home for two months and then the potential lender decides the buyer can't qualify for the mortgage loan. Now that's bad news!

2. Buyer is in the home for two months... gets a bad case of buyer's remorse and wants out of the deal. Now that's bad news!

3. Buyer is in the home for two months and comes to the closing table with a long list of needed repairs he has discovered during residency. Now that's bad news!

4. Buyer is in the home for two months during which time he does serious damage to the property and then disappears. Now that's bad news!

Is there any good news? Well, you are getting rent money for those two or so months.

Let's check the score card:

Bad News = 4Good News = 1

I would say that the investor comes out on the short end of that game. Let's agree that the only time you rent during closing is if you are in dire need of that rental income.

If you must rent then you must carefully prepare a lease agreement. No handshake deals allowed!

If the buyer/renter refuses to close the deal for any reason, the only way you can get them out of the property is if you have a rental agreement that gives you the right to evict. It must also be a short term lease, so there is no misunderstanding about the buyer/renter remaining in the property if the deal goes bad.

In the purchase agreement you must spell out exactly, in a dollar amount, what repairs or improvements you will pay for. The agreement should indicate the buyer has had an inspection period and is buying subject to your limits on repairs and costs... now and in the future. If legitimate defects are found in the property during the rental period you can negotiate a solution.

You must collect sufficient security deposit to cover rent and potential damage the renter/buyer might inflict upon the property.

Look, if for some reason you feel you must accommodate the buyer during the closing period? pay for a motel room. Chances are it will be far cheaper in the long rund.

Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Forbes

The Blockchain For Real Estate, Explained
Forbes
There is a lot being written about blockchains, bitcoin and related technologies, and for many real estate professionals, this is part of a brave, new, confusing world of technology. Like the original internet, the blockchain is a revolution in ...



Los Angeles Times

Fox News host Sean Hannity's real estate holdings draw scrutiny
Los Angeles Times
On Feb. 6, conservative media personality Sean Hannity brought his longtime financial advisor, William Lako, on his popular radio show to talk about money. "For 25 years, you've watched me start with nothing, right, pretty much?" Hannity asked Lako ...
Sean Hannity Faces Conservative Criticism Over Real Estate DealsTIME
Sean Hannity's Real Estate Empire Includes Okemo CondoSeven Days
Will Sean Hannity's Secret Real-Estate Empire Get Him in Trouble at Fox?Vanity Fair
HuffPost -Politico -Slate Magazine
all 156 news articles »


Forbes

Real Estate Market For Spring 2018 Is A Good News/Bad News Story
Forbes
The Spring 2018 real estate market is a good news/bad news story. A recently released report from Arch Mortgage Insurance points to affordability slipping, inventory declining while interest rates and housing prices rise. Key findings from Arch ...



Bloomberg

Sears Soars After Lampert Floats Buying Kenmore, Real Estate
Bloomberg
As part of the proposal announced Monday, ESL also made an offer for Sears real estate which includes the assumption of the $1.2 billion of debt obligations secured by the holdings. Regardless of whether ESL becomes the ultimate buyer of Sears assets ...
Sears soars as Lampert floats buying Kenmore, real estateChicago Daily Herald
Sears CEO Eddie Lampert offers tentative deal for real estate, KenmoreUSA TODAY
Sears stock soars as Lampert offers to buy Kenmore brand, real estateIndianapolis Business Journal
Peoria Journal Star -Chicago Business Journal
all 85 news articles »


Chicago Tribune

'A Home on the Lake': Real estate and racism surface from Evanston's past
Chicago Tribune
The American dream of home ownership is indelibly entwined with our shameful history of racial discrimination. That's particularly true in Chicago, which has served as a laboratory for segregation for decades. On stage, we've seen that history come to ...



The MReport

Global Real Estate Market to Reach $4.2B by 2025
The MReport
Real estate spaces for commercial, retail, industrial and healthcare infrastructure are in high demand with increasing urbanization,” Grand View reported. The report indicated that the American and Middle Eastern Africa markets especially are set to ...



Updated presentation for investors of INVL Baltic Real Estate
GlobeNewswire (press release)
INVL Baltic Real Estate announces an updated presentation that will be used for the meetings with investors. Compared to the presentation, which was published on 21th December 2017, the Company informs that the information related to the terms of the ...

and more »


Fortune

Climate Change Is Already Depressing the Price of Flood-Prone Real Estate
Fortune
New research shows that real estate properties in areas affected by extreme weather and sea level rise are losing value relative to less exposed properties. The effects are already substantial, but they may point to a looming collapse as climate change ...



DeSoto Times-Tribune

Real estate agency set for new location
DeSoto Times-Tribune
Last year, we issued 1,392 new permits for new houses, so you can see the trend. We're looking for about 1,500 permits for new houses in DeSoto County. That's 1,500 new houses that didn't exist at the beginning of the year.” “Realtors are the front ...



Ahval

Turks eye-up Greek real estate despite tensions
Ahval
It is no longer rare to hear Turkish spoken on the streets of Greek cities such as Athens and Thessaloniki as the numbers of Turks in such places has skyrocket by more 1,000 percent since 2015. But unlike the hundreds of thousands of Turks who holiday ...

and more »

Google News

home | site map
© 2006 TIGER MEDIA