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If you’re planning to...

What to expect when renting a home.

If you’re planning to rent a home one thing you can expect to go through is tenant screening.  The reasons should be obvious—there is always the potential that a renter may default on rent payments, damage the rental home they are in or even conduct illegal activities in a rental home. 

With the advent of the internet, online credit and background checks are much easier and less costly to get than in years past.  Anyone—even a private homeowner trying to rent a house they own can run one.  Typically they cost less than fifty dollars.

Your landlord will ask for, and check, references.  Even apartment complexes ask for previous address history. 

The landlord may run a credit check.  If a prospective tenant has bad credit, they may be turned down for renting a home. 

Background checks are becoming more and more common for people hoping to rent a home.  If a renter has a poor job history or criminal background, they may be turned down. If you're looking for a home to rent or would like more information on rentals on the Destin or Santa Rosa Beach, contact us here at bealocaldestin.com. We'll get you pointed in the right direction.

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.

Sellers using owner financing...

Selling your Destin Home via a "Rent To Own" Program

Sellers using owner financing to help sell a home often structure the terms and conditions of the financing according to a “rent to own” arrangement.

Generally speaking, rent to own when selling a home is fairly straightforward, although it is typically much more akin to a lease agreement for renting a property than a mortgage or home loan.

Legally, the home buyer rents the home for sale with the agreement that a portion of each month’s rent applied to the purchase price of the home.  At some point, either when the home for sale is completely, or substantially, paid off, the buyer takes possession of the home for sale, secures a traditional mortgage (assuming he or she can do so—although since the amount the home buyer needs to borrow will be significantly lower than the original sell price, this should be easier to do) and begins making standard payments.

It is common for owner financed homes for sale to require that the buyer make a balloon payment at the end of the finance period.  In such cases, the buyer will typically try to get financing from another source, such as a traditional home mortgage finance company, to make the payment.

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.

Securing financing for distressed...

Financing a Distressed Property Purchase

Securing financing for distressed real estate purchases can be tricky.  If you have good credit, collateral and a solid business plan you may be able to go with a traditional mortgage.  But, in today’s real estate climate, that is becoming increasingly more difficult—even for real estate buyers who look good on paper.

Assuming you can’t get a traditional mortgage, you might try for a business loan from your bank.  You will need to show them your business plan and maybe even a pro forma, but it could go through.

If that doesn’t work, you will probably have to resort to private financers.  In other words, talk to that rich guy who lives at the end of the street.  Or people you know who may want to partner with you.  Or even a venture capital firm.

If nothing else works, you might even consider trying for neighborhood rehabilitation funds from the government, although they are becoming increasingly difficult these days.

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.

 

In today’s economic climate...

How Do Foreclosures Affect Property Values?

In today’s economic climate there are very few residential neighborhoods that don’t have at least one or two foreclosured properties.  So the question is, especially if you live in a development with a lot of foreclosed real estate, is how this affects you.  Simply put, it’s not good. 

Real estate foreclosures are bad for everyone.  Bad for the homeowner, bad for the mortgage lender, bad for the neighbors, bad the country as a whole.

In particular, home foreclosures run down property values.  Why?  Supply and demand.  The real estate finance company or mortgage lender who is foreclosing does not want the property on their books so they try to sell it.  It gets listed with a realtor and put on the Multiple Listing Service.  The supply of homes on the real estate market goes up and when supply of real estate—or anything—increases, the price goes down.  This, in turn, drags down the average price for the entire area.  Even if the property sells, it doesn’t help because the lower price at which it sells is a “comp” which a property appraiser will use when appraising other properties in the area—even if they aren’t in foreclosure.

Also, foreclosed real estate is typically vacant.  Vacant homes do not get the grass cut, the roof repaired or broken windows replaced.  The overall condition goes down, contributing to a poor appearance for the neighborhood as a whole and making the foreclosed real estate that much more difficult to sell.

 

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.

 

In general, there are...

Fix and Flip vs Double Closing your Investement Property

In general, there are two schools of thought with regard to real estate flipping. 

The most common, and the easiest to pull off, is the “fix & flip.”  This is a fairly straightforward approach.  The flipper finds a property that needs a little (or a lot of) work.  Presumably the buyer is reasonably handy (or has access to people who are) and is able to fix up his newly acquired piece of real estate.  Once it’s in good shape, it goes back on the real estate market at a higher price.  Hopefully, it will sell. 

The other approach, and the one which has caused so many people to view the flipping of real estate in a negative light, is the idea of the double closing.

The double closing essentially means you buy a piece of property in a rapidly accelerating real estate market.  A “seller’s market” so to speak.  The buyer then turns around and immediately puts it back up for sale at a higher price.  When conditions are right, flippers have been known to literally sell at a profit on the same day that they bought.  Hence the term, “double closing.”  The flipper sits down, goes through the closing as a buyer, then immediately goes through another closing as the seller.  Afterwards, he or she walks out with a pocketful of money.

Sounds like fun, huh?  Don’t be fooled.  This approach worked for a very short period of time during the last real estate boom.  Like all bubbles, while it was running up everything was great.  But as soon as the boom turned to bust, a lot of people were left holding the bag—in this case, the bag being one or more pieces of real estate they couldn’t sell and which were rapidly losing value.

Don’t let “flash in the pan” real estate trends catch you unaware.  Talk to a professional realtor (like those here at bealocaldestin.com).  If the real estate market is ripe for a flip or two, they’ll let you know.  But if it’s poised to collapse, your realtor will be the best source of information you ever had.

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.

 

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