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


Palm Beach Daily News

Palm Beach real estate market shifting into higher gear
Palm Beach Daily News
With a new season upon us, Palm Beach's revved-up real estate market has continued its year-long shift into higher gear, driven in no small part by affluent home buyers whose wealth has steadily increased and who increasingly view the island as a ...



Real estate transfers: Reported Oct. 21, 2018
Herald-Whig
Real estate transfers recorded in the office of Adams County clerk and recorder. Quincy area. Russell F. Rohrer, property at 2000 State St., to Elias M. Wigfall and Lachelle M. Wigfall. Melissa R. Hinkamper, property at 1212 N. 20th St., to Melissa R ...



Mansion Global

Menorca's Real Estate Market Sees Rapid Growth
Mansion Global
One of Spain's Balearic Islands, Menorca is known for its natural beauty and has a reputation for being family-friendly and low key. It is the least visited and developed island in the archipelago, but lately it's been receiving more attention. Tourism ...



Franklin County considers collecting real estate tax twice a year
Roanoke Times
The county's board of supervisors is considering moving to twice-a-year real estate tax collection. Doing so would create a one-time windfall in the neighborhood of $18 million that could be applied to capital projects or used to boost the county's ...



Naples Daily News

Real estate briefs
Naples Daily News
Free real estate seminar. Naples' top real estate professionals are holding a public talk to help homebuyers and sellers avoid making common but harmful mistakes. According to local Realtor Jim York, who will be one of the professionals at the seminar ...



OCRegister

Commercial real estate: Catch the first wave, there may not be another!
OCRegister
Enlist your commercial real estate professional to take you on a tour of your competition. Sure, you can accomplish this on paper, but if you get in the car and look at other things available, you'll see the market through a buyer's perspective ...



Forbes

Six Skills Real Estate Investors And Developers Need To Develop
Forbes
Being a successful real estate investor or developer requires the unique ability to see an opportunity where others do not. Looking at trends in other successful markets and recognizing those trends elsewhere are key factors in identifying opportunities.



Wall Street Journal

The Bullies of Real Estate
Wall Street Journal
“Bullying is rampant among real-estate agents, but you see less of it among the top-performing agents. The most common form of bullying here is a passive-aggressive running of the clock, which usually happens when buyers and sellers are negotiating ...



Real-Estate Matters: Options exist for buying parents' home in private sale
The Columbus Dispatch
Q: My parents want to sell their house to me as part of a retirement plan. We're hoping to find a way where I can make a contract specifically with them so I pay them an agreed-upon monthly rate with some interest rather than going through a mortgage ...



Washington Examiner

Treasury makes real estate a winner of tax law's 'opportunity zones'
Washington Examiner
The Trump administration released the first draft rules for an ambitious plan to provide tax breaks for investment in economically disadvantaged areas labeled “opportunity zones'” on Friday, and real estate appeared to be the big winner. “We want all ...
REG-115420-18 - IRS.govIRS.gov
Opportunity Zones Frequently Asked Questions | Internal Revenue Service - IRS.govIRS.gov
View Interactive Map - ArcGIS OnlineArcGIS Online
Urban Institute
all 163 news articles »

Google News

home | site map
© 2006 TIGER MEDIA