407-781-7312 |We Buy Homes in Orlando Fast| We are house buyers in Florida. We help people sell their house regardless of condition or location, equity, or situation. We’ve handled just about every situation you can imagine. We buy with cash. We stop foreclosures for free. We even have many creative solutions available. We are experts.
For example, did you know there are at least a 12 Different Ways to Sell Your Property that Realtors won’t tell you about? Eugene is a licensed Realtor.
The rent to own market is one that can benefit both the buyer and the seller in the right transaction. Having a clear contract and understanding of terms helps mitigate risk on both sides of the equation.
The Basics of Rent to Own Your Home in Orlando
Today’s lending market has a loan for just about everyone. However, there are consumers who don’t fit into the traditional lender’s guideline book. It might be for a variety of reasons but often has to do with not having enough of a down payment. The rent to own model allows a renter to pay a comparable price as they would if actually renting while accumulating the down payment. This is all done while living in the home they want to buy.
Seller’s Benefit
It may not seem like there is much for a seller to benefit from a rent to own scenario. After all, who doesn’t want to liquidate the home and take their profits and move on, literally? There is a group of sellers out there who aren’t in a rush for the funding and see it as an opportunity to ensure a higher sale price.
Sellers may continue to take advantage of property tax deductions and perhaps mortgage interest. If for any reason the buyers balk on the deal, the seller had income for the property for the duration the buyers were in the property.
Nicer Rental with Caring Upkeep
Both parties win when it comes to property condition on rent to own properties. Renters are usually looking at nicer homes compared to most rental market dwellings in the same price range. On the other side, the seller now has renters with a vested interest in the property to help maintain and care for it.
Elements of the Agreement
There are four basic elements to the rent to own contract: the option money, the purchase price, the rent and the maintenance fees.
The option money is like a good faith deposit when buying a home traditionally except it isn’t refundable in a rent to own scenario. This is money given to the seller that allows the buyer the option to buy the home later. This option expires if not used. The sellers typically keep the option money.
The purchase price is the amount the buyer will pay for the home once they execute the option to buy. Negotiating this price is tricky because it needs to consider the future value of the home. It can be hard to know if the housing market will be higher or even lower. The buyer may decide if the market drops to walk away from their option or try to renegotiate. Sellers will look to negotiate higher prices compared to the current market price.
The rent is the monthly obligation while in the option period. While rent is usually higher than typical rent, a portion is credited toward the purchase price in the home. This might be 25 % of every rent check.
Maintenance is an option the seller can include. This would be an additional fee to pay property taxes, repairs, and general home maintenance.
Should You Rent to Own Your Home in Orlando?
While rent to own isn’t for everyone, it is a good option when a buyer and seller both see the value in the arrangement. The buyers get time to fix issues preventing financing today but still get the property. The sellers get option money with the potential of a future higher value sales price.
Buyers need to work diligently to execute the option and be prepared to qualify for a traditional loan by the time the option is due. Check credit and talk to a lender early in the rent to own process so you can establish the right elements of credit and income to qualify for a loan that buys out the seller at the option execution.
Buying tax liens is an opportunity to own a property for pennies on the dollar. While this is entirely true when buying tax liens, develop proper due diligence procedures so you aren’t buying a piece of swampland and trying to evict alligators.
Here Are Five Quick Tips You Should Know Before Investing in a Tax Lien in Orlando
Start Close to Home
You can buy tax liens anywhere. Initially, stick to Orlando and the surrounding areas, where things are more familiar and accessible. You’ll be able to easily drive to visually inspect potential properties and neighborhoods. Of course, if your neighborhood is too expensive or competitive for lien investments, then venturing out a bit further is necessary.
But learning the process closer to home helps you avoid mistakes of investing in properties sight unseen. Once you have a few deals under your belt, you’ll be able to develop a plan and process to determine if further locations are a good investment.
Be Patient and Happy with Favorable Interest Rates
Because everyone hears that you can own property for pennies on the dollar with tax liens, it’s assumed every lien purchased results in a successful foreclosure. This isn’t the case. Don’t get frustrated. Continue to collect premium interest rates on the tax lien. Think about it: if you invest in a tax lien in Orange County Florida and it offers 8% interest on your investment when the bank is only paying 2%, you’re doing better than average.
Learn to appreciate this. Eventually, a foreclosure will fall your way. As you get better, you’ll also learn how to find properties closer to forecloser.
Do Your Homework
Investing in tax liens in Orlando isn’t without risk. Property owners may not pay the property tax because the real estate has no value – maybe it was built on a nuclear waste dump. You need to do more than putting your eyes on the property and neighborhood.
Learn how to go through public records to find title encumbrances including other taxes, potential bankruptcy delays, mortgage information and other history related to the parcel. Make sure it’s a property you can rehab and flip or rent out as is. Either way, doing homework gets you the best potential return on your investment.
Get Organized from the Start
While the first tax lien or two that you buy won’t overwhelm you, as time goes on and your inventory grows, you’ll need an organized system in place for keeping track of investments locations, payment schedules and foreclosure probation periods.
A big problem for tax lien investors is not following through on the investment when they see the opportunity to foreclose. Even worse is not realizing another investor is coming in and scooping up the following year’s lien and taking a foreclosure position away from you.
Investing in tax liens in Seminole County is a real business. It is not a hobby. Be organized so you can make money and have really fun hobbies, like traveling to Greece and learning to scuba dive.
Have an Accountability Partner
If you can, have someone you can bounce around research ideas with. If you can get a mentor, that is even better, but at least find someone who is willing to help you stay on track with budgets and research. This is especially true if you plan on attending a live auction where the energy is mesmerizing.
Undisciplined tax lien investors will continue to chase bids, going above budget and cutting into potential profits. An accountability partner should understand the bottom line dollars you plan on spending on each potential tax lien investment and help hold your hand down if you suffer from the “shiny object” syndrome.
It happens, and it’s usually unpleasant, to say the least. If you’re going through a divorce, you certainly don’t want to add to the anguish and inconvenience, especially when it comes to splitting up your assets. Finding someone who is in the market to buy a house in Orlando – in this case, your property – may be one of your goals at this time.
You have several options if you need to sell your house fast in a divorce. But wouldn’t it be great if you could sell your house fast for cash? That way, you’d be able to expedite the whole unpleasant process and have some cash on hand to help clear debt and pay attorney’s fees. But, first, before you decide, consider your main options.
How to Sell Your House Quickly in a Divorce in Orlando
You could always take the traditional route and go through a real estate agent. If you do, you won’t have to worry about showing your house and drawing up contracts and the myriad of other details because the agent will take care of all this for you. This is definitely a viable option, but there are some significant drawbacks.
First, you’ll have to get an appraisal, which will cost you. Your house will likely have to be shown multiple times, and when you do get a buyer, you’ll have to wait for them to get financing. Also, when you accept a buyers offer, the closing date generally won’t be for another 30 to 60 days. The average time for this whole process is generally a minimum of three months.
Another option is a short sale, which means someone is buying a house for less than the mortgage. A short sale involves an agreement with your bank or mortgage company that will allow the sale of the house for less than is owed on it. This route can sometimes be faster than going through an agent, but it, too, has drawbacks.
For one thing, it can negatively affect your credit. Credit-wise, the best you can do in a short sale is to get a “Not Paid as Agreed” notation on your credit report. But that’s a lot better than having to suffer a foreclosure, which can ruin your credit for seven years. Still, if you can arrange a short-sale agreement, you’ll soon be free and clear of the property.
Another option – and maybe the best one if you need to sell your house quickly in a divorce – is to try a Orlando cash home buyer. If you do this, you can expedite the whole process, get a fair value for your house, and avoid much of a headache.
The whole process of selling your home to such a company – for a fair cash offer – can take as little as seven days – just one week, not months. Again, the professional home buyer buying a house in Orlando pays cash, which means you don’t have to sit around waiting for a retail buyer to get a loan. Also, you won’t have to pay for any repairs to your house before you can sell it. The company will make and pay for all needed repairs. In addition, the reputable companies pay all closing costs.
If you need to sell your house quickly in a divorce in Orlando, you just might consider a cash home buyer in Orlando. It’s easy, It’s fast. You’ll get a fair cash offer.
Cash buyers expedite the real estate sales process. There aren’t pending mortgage contingencies or potential qualification problems. Cash buyers are experienced buyers who don’t freak out at every little inspection turn.
While a cash buyer may happen upon the “for sale sign” or Multiple Listing Service (MLS) listing, marketing specifically to cash buyers takes some target marketing.
Be prepared; cash buyers are usually investors. They want a deal to fix and flip or rent. They need to make a profit. As such, investors seek properties at wholesale prices: 20-40% or more below market value. If you aren’t prepared to drop the price, you’ll dissuade cash buyers. Don’t be a pushover. But be flexible in price and terms when marketing to cash buyers and investors.
4 Ways to Market Your Property to Cash Buyers in Orlando Fla
1. Advertising to International Markets
Investors are in all parts of the world. Chinese, Russians and Middle Eastern investors like to invest in this country too. Most make cash purchases. Many deals are completed without the buyer ever visiting the location prior to closing.
Find a brokerage with an international division. International investors often look at high-end real estate markets such as New York, Florida, Hawaii or California. That being said, if your property in Orlando has the right mix of desirability, you may find the right international investor ready to buy.
International investors often pay market or near-market value rather than wholesale prices. Obviously, this is good for your bottom line.
2. County Court House Auction
The county assessor’s office has a list of foreclosed properties delinquent on property taxes. When the county holds its auctions, cash investors buy fixers to flip. This can be a great place to market your property to cash buyers.
The auction tactic requires an outgoing personality and you have to be willing to approach strangers. Foreclosure auctions are intimidating for any newbie. People are there for business: to win the property on their list. But if you can make a few friends and capture contact information along the way, then you can build a list of buyers accustomed to paying cash and moving fast. They obviously aren’t intimidated by problem properties either, so that can be a plus.
3. Real Estate Clubs
Find a local real estate club. These are groups of people who network, educate and invest together. They are always looking for good investments, especially close to home. Send an email to the director, asking if you can attend the next event.
Meet as many people as possible and let them know about your property. Invite everyone to an open house or private showing. Even if members at the meeting aren’t looking for a property at that moment, they most likely have a few colleagues in other real estate clubs to happily share new opportunities with.
4. Discount the Price
Cash is king and cash buyers know this. Setting a property price at wholesale prices gets every buyer, cash and lender-backed, coming out in droves. That being said, if you really want the cash buyers, marketing the property at wholesale prices catches their attention with MLS and other online real estate listings.
Even before the house goes on the market, send the preliminary listing information to local real estate brokerages. Many realtors maintain databases of investors who use realtors as their eyes and ears for potential quick buys. Getting in on a property before it hits the listing services (a pocket listing) means they have control over the deal without added market competition and chaos.
Final Thoughts
While any marketing may generate interest from cash buyers under the right circumstances, these 4 ways to market your property to cash buyers in Orlando can probably do it faster. Target international real estate brokerages, real estate clubs and auction sales to locate buyers. Then list the property at the right price investors can’t resist. With enough cash buyers, you may get a few offers higher than the traditional wholesale price.
If you are looking for investment properties in Orlando, give us a call at (407) 781-7312. We have a steady flow of new properties coming in but they usually sell fast. Additionally, you can fill out the form on our website and we can send you new listings as we get them.
Have you always wanted to invest in tax liens in Orlando but you’re not quite sure where to start? Investing in tax liens can be a lucrative source of real estate income and it’s certainly worth looking into.
In this post, we will examine four key reasons as to why you may want to try this.
What is a tax lien?
First, you need to have an understanding of what a tax lien is. A lien is placed on a property that the owner has fallen behind on their tax payments in order to secure the property as collateral for the unpaid taxes. Then there is an auction held for the tax lien to the highest bidder. The investor who offers the lowest rate of interest or who will pay the highest premium is awarded the lien.
High Return on Investment– One reason to invest in tax liens in Orlando is the fact that it gives you the right to the tax debt that the owner has not paid. The holder of the lien certificate collects interest on the property for the tax lien until the owner pays up on their taxes. So this may allow you to make a sizable amount of interest on the homeowner’s tax debt until they catch up.
Property Ownership– If you want a chance at owning a property at a fraction of the cost, investing in a tax lien may be a way to do this. If the owner is not able to make good on their tax debt, the property can be passed on to the holder of the lien certificate, saving you thousands of dollars while becoming the owner of the property. If the owner does not pay, the deed reverts to you.
Property Value Investment– As long as you check out the value of the property that you are investing in, you may be able to secure a good investment in a nice property for a fraction of the market value. If the owner cannot make good on their tax debt, you own the property. But this will only be an advantage to you if you invest in a high-value property. Make sure to do your due diligence to ensure you are investing in a tax lien of a property with promising value.
Passive Income– Another no-brainer reason you should consider investing in property tax liens in Orlando is that it creates an automatic passive income for you. As with any passive income opportunity, the work is at the front end. Once you get it set up, you’ll see regular income from your investment, provided the tax debt stays on the books for awhile. If you end up owning the property in Orlando, you can resell the property for added profit if you choose or rent it out for recurring income.
Are Tax Liens in Orlando a Good Investment?
Tax liens are an interesting way to make money on real estate. But if you are interested in getting into real estate investments, tax liens should not be the primary way you invest in real estate properties. That’s because they are riskier investments if you don’t know the property or the value of it before you buy. This is why you need a good real estate investment expert to help you make the best decision on any type of real estate investment.
Call us at 321-363-9625 to learn more about buying tax liens or other investment properties in Orlando. Your future in real estate investing starts here.
Mortgage rates have mostly held steady the past few weeks, with the 30-year fixed-rate loan still averaging below 4 percent.
“The 10-year Treasury yield was relatively flat this week, as was the 30-year mortgage rate, which rose 1 basis point to 3.93 percent,” says Sean Becketti, Freddie Mac’s chief economist. “Despite a strong advance estimate for second-quarter GDP, markets are erring on the side of caution."
Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 3:
30-year fixed-rate mortgages: averaged 3.93 percent, with an average 0.5 point, rising from a 3.92 percent average. Last year at this time, 30-year rates averaged 3.43 percent.
15-year fixed-rate mortgages: averaged 3.18 percent, with an average 0.5 point, dropping from last week’s 3.20 percent average. A year ago, 15-year rates averaged 2.74 percent.
5-year hybrid adjustable-rate mortgages: averaged 3.15 percent, with an average 0.5 point, falling from last week’s 3.18 percent average. A year ago, 5-year ARMs averaged 2.73 percent.
ATTOM Data Solutions, released their Q2 U.S. Home Affordability Index on June 29, 2017, which shows the U.S. median home price of $253,000 in the second quarter of 2017 was at the least affordable level since Q3 2008, a nearly nine-year low in affordability. Median home prices rose faster than wages in 87 percent of local markets; 45 percent of markets less affordable than their historic norms, an eight-year high.
The national home affordability index was at 100 in the second quarter of 2017, the lowest national affordability index since Q3 2008, when the index was 86, and meaning the share of average wages needed to buy a median-priced home nationwide was on par with its historic average (see full methodology below).
The report also shows 210 of 464 U.S. counties analyzed for the index (45 percent) were less affordable than their historic affordability norms in the second quarter of 2017; the highest share of markets less affordable than their historic norms since Q4 2009.
“While home price appreciation in the second quarter accelerated to the fastest pace in more than three years, wage growth turned negative, posting the biggest year-over-year decrease in five years in Q4 2016; the most recent average weekly wage data available,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “That combination of accelerating home price growth and slowing wage growth, along with mortgage interest rates that are up nearly 50 basis points from a year ago, eroded home affordability nationwide to the lowest level in nearly nine years, and pushed the highest share of markets beyond the threshold of normal affordability in nearly eight years.”
Home Prices Rise Faster than Wages
Nationwide the median home sales price in the second quarter of 2017 was $253,000, up 7.7 percent from a year ago, the biggest annual increase since the Q1 2014. The average weekly wage nationwide was $1,067 in Q4 2016 (the most recent weekly wage data available from the Bureau of Labor Statistics) down 1.4 percent from a year ago, the biggest annual decrease since Q4 2011.
Since bottoming out nationwide in Q1 2012, median home prices nationwide have increased 69 percent while average weekly wages have increased 9 percent during the same time period.
Median home prices in Q2 2017 grew at a faster annual pace than average weekly wages in 403 of the 464 counties analyzed in the report (87 percent), including Los Angeles County, California; Cook County, Illinois in the Chicago metro area; Maricopa County, Arizona in the Phoenix metro area; San Diego County, California; and Orange County, California.
“All counties within in the Seattle market area saw a sharp contraction in affordability between Q1 and Q2, which is disturbing,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where home price appreciation outpaced wage growth in all three area counties. “The local economy is firing on all cylinders but the number of homes for sale remains at almost historic low levels and this is putting intense upward pressure on home prices as demand far exceeds supply.
Median home prices in King County, where the city of Seattle is located, increased 15 percent from a year ago while average weekly wages increased 3 percent annually.
“Unfortunately, I do not expect to see any substantial growth in the number of homes going on the market through the balance of 2017 and this will continue to erode affordability as buyers compete for the few homes that are available to them,” Gardner added.
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Five Counties with Lowest Affordability Index in Q2 2017
Counties with the lowest affordability index (least affordable relative to historic norms for the county) in Q2 2017 were Denver County, Colorado (74); Genesee County, Michigan in the Flint metro area (75); Adams County, Colorado in the Denver metro area (77); Arapahoe County, Colorado in the Denver metro area (78); and Weld County, Colorado in the Greeley metro area (78)
Other metro areas with counties ranking in the top 20 for lowest affordability index in Q2 2017 were Knoxville, Tennessee; Boulder, Colorado; Dallas, Texas; Saginaw, Michigan; Nashville, Tennessee; Austin, Texas; Portland, Oregon; Kennewick-Richland, Washington; Lawrenceburg, Tennessee; New York, New York; and Atlanta, Georgia.
Counties with the highest affordability index (most affordable relative to historic norms for the county) in Q2 2017 were Atlantic County, New Jersey, in the Atlantic City metro area (161); Sussex County, New Jersey (153); Onslow County, North Carolina, in the Jacksonville metro area (147); Orange County, New York, in the New York metro area (141); and Tolland County, Connecticut, in the Hartford metro area (138).
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Counties with Highest Share of Average Wages to Purchase Median Priced Home
Nationwide in Q2 2017, buying a median-priced home required 31.8 percent of average wages.
Counties with the highest share of average wages needed to buy a median-priced home in Q2 2017 were Marin County, California, in the San Francisco metro area (126.4 percent); Kings County (Brooklyn), New York (125.9 percent); Santa Cruz County, California (112.3 percent); Summit County, Utah in the Summit Park metro area (107.8 percent); and Monroe County, Florida, in the Key West metro area (100.3 percent).
Counties Where Average Wage Earners Need 43 Percent of Income to Buy
Average wage earners would need to spend more than 43 percent of their income — the maximum debt-to-income ratio allowed for a “qualified mortgage” under guidelines from the Consumer Financial Protection Bureau (CFPB), to buy a median-priced home in 144 of the 464 counties (31 percent) analyzed for the report.
Counties requiring more than 43 percent of income to buy a median-priced home included Los Angeles County, California (66.9 percent); San Diego County, California (65.2 percent); Orange County, California (83.2 percent); Kings County (Brooklyn), New York (125.9 percent); and Queens County, New York (77.6 percent).
Counties Where Average Wage Earners Need 25 percent or Less to Buy
Average wage earners would need to spend less than 25 percent of their income to buy a median-priced home in 102 of the 464 counties (22 percent) analyzed for the report, including Wayne County, Michigan in the Detroit metro area (12.8 percent); Philadelphia County, Pennsylvania (17.1 percent); Cuyahoga County, Ohio in the Cleveland metro area (18.4 percent); Allegheny County, Pennsylvania in the Pittsburgh metro area (22.1 percent); and Saint Louis County, Missouri (24.9 percent).
“Ohio continues to be a very affordable housing market, even though we are seeing an overall statewide increase in housing prices,” said Matthew Watercutter, senior regional vice president and broker of record for HER Realtors, covering the Dayton, Columbus and Cincinnati markets in Ohio. “This increase is due to a lack of quality inventory, which causes multiple offers on homes and above asking offers in order for buyers to achieve an accepted offer very early in the marketing of new inventory.
“Some areas are still seeing lower than normal sale prices and home prices are still recovering,” Watercutter added. “These areas are still in an economic recovery mode, and have not seen the increase in housing prices as quickly as other areas of the state.”
