Instant Angels
   We buy properties real fast

                                                                                               ...no more worries!

 Home  Rent Back or Buy Back  Submit Your Property  Contact us
 

More Articles


Sell And Rent Back Properties For Money

by Peter Shukla

Among the many options available to make cash, many investors do not think about a rent back apartment. Similarly, a home seller may need a few more months in their current dwelling, and will be willing to arrange to sell and rent back. If the purchaser is looking for steady income, and can wait for the "big kill," this could be a perfect situation.

Builders who would like to increase their cash flow but keep the property to use as a model home often use a rent back program. The model home will help the builder sell homes by allowing customers to see the builder's finished product. If you are looking for a great deal on a home, consider one that the builder would be willing to sell and rent back from you.

As with any leasing situation, there will be a constant regular stream of cash from the rent paid. Dealing with a home builder is much more likely to be secure, since both sides have a vested interest in keeping the relationship up to date. No construction agency will allow their model home to become unaccessible due to a missed rent check!

Second, houses used as models usually demonstrate all available upgrades to prospective homeowners. As a result, you will get the best possible house. Often, houses that builders wish to sell and rent back will be reduced in price for these options. Ultimately, this equates to a great house at a much better value than other buyers will get when building an equivalent unit.

There are many benefits to buying model homes. Many times builders will want to retain the first homes built in a new community as their model homes. When you buy a model, then, you're getting the rock bottom price. As builders develop communities, they generally increase prices at least once every quarter, so homes built later will end up costing more. Once the community is completed you'll find yourself with an almost-new home which has already built up a lot of equity even though your home cost much less than those of your new neighbors.

Naturally, there is a downside to this sort of deal. It will not be possible for you to actually live in your new home for an indefinite period of time, perhaps years. Also, while you have contracted for a brand new house, it will have had a large number of visitors in the meantime, opening it up to the possibility of consequent damages. However, if you plan to retire in a couple of years, this situation could be an ideal one for you. In addition, builders are generally quite meticulous when it comes to the upkeep of their model home, cleaning and otherwise maintaining it scrupulously so that it will give a new home impression to their potential buyers.

You get all the benefits of a rent back arrangement, If you can be patient and delay moving into your new home. Your increased equity with all the extra features, not to mention the income, will almost certainly make it sensible.

Homes for rent back are usually made available by builders wishing to increase cash flow but keep a home in inventory for use as a model home. This model home will be open to potential buyers to help visualize their own home should they contract with the builder. If you purchase a home that the builder would sell and rent back from you, you stand to benefit in many ways. If you're considering purchasing a home to move into and as an investment, you may want to also look into a rent back apartment.

Published January 3rd, 2008

Filed in Family, Finance, Home, Real Estate, Relationship

 

 

Next: How Can We Help You?