Since October of 2012 new home sales have climbed drastically, and in some areas easily surpassing 35% appreciation. That's a rather excellent thing considering what happened in 2008. Homeowners can now ask themselves; "do I really have equity?" Yes they do. Of course the reason new home sales have been running strong but until recently (mid-2013) whereas, used home sales haven't appreciated all that much - is simply because financing has been available for new homes and a lot of the old inventory which is now in foreclosure is only being sold to cash buyers and it's hard to get financing of those properties.
Perhaps you've noted where you live but there have been investors come by, usually from out of the area and make cash bids on all of the bank properties. Some banks have allowed the homeowners to stay in those foreclosed properties and rent them as renters rather than homeowners. This is indeed an interesting strategy and it also opens up a whole new business model for banks and large investment companies. I'd like to talk to you about that for a moment if I might.
There were two interesting article in the Wall Street Journal on July 31, 2013 worthy of note:
1. "Owner-Rental IPO Offering" by Robbie Whelan and Telis Demos
2. "Rent-to-Buy Players Plan Financing Push - Blackstone and Deutsche Bank in Talks to Sell First-Ever Bond Backed by Home-Rental Payments; Hunger for Returns," by Jeannette Neumann.
On the first article, consider this business model if you will. You can own the properties or offer services to banks to help them rent out their foreclosure properties so they don't have to take a serious haircut and substantial losses - or - you can buy up tons of properties; foreclosures, short sales, REOs, and other deals and run the company like an income property REIT. You can buy deals, sell at market peaks, re-finance as needed and since you control the inventory, you can wait and pounce on just about any opportunity, without risking your own capital, better yet, if you build it up and sell it to the fishes (IPO) you are already paid, what do you have to lose?
The second article shows that there must be some money in it, because all the big boys are out playing in this new game. Indeed, it is a viable solution to all those "house flippers" who artificially and temporarily held inventory, it also keeps old inventory off the market, which is just as well because so many homebuyers have lousy credit ratings due to job losses or having owned a home which was foreclosed on either for strategic default reasons or because they couldn't make the payments on an arm loan.
With all the high student loan debt and college kids graduating with advanced degrees straight into a job market as economically enslaved workers, they will be able to buy a home for quite a while anyway, they may as well rent-to-own well they're just starting out, getting married, and building a family. Please consider all this and think on it.
Lance Winslow has launched a new provocative series of eBooks on Future Business Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
Article Source: http://EzineArticles.com/?expert=Lance_Winslow
Article Source: http://EzineArticles.com/7911125
Perhaps you've noted where you live but there have been investors come by, usually from out of the area and make cash bids on all of the bank properties. Some banks have allowed the homeowners to stay in those foreclosed properties and rent them as renters rather than homeowners. This is indeed an interesting strategy and it also opens up a whole new business model for banks and large investment companies. I'd like to talk to you about that for a moment if I might.
There were two interesting article in the Wall Street Journal on July 31, 2013 worthy of note:
1. "Owner-Rental IPO Offering" by Robbie Whelan and Telis Demos
2. "Rent-to-Buy Players Plan Financing Push - Blackstone and Deutsche Bank in Talks to Sell First-Ever Bond Backed by Home-Rental Payments; Hunger for Returns," by Jeannette Neumann.
On the first article, consider this business model if you will. You can own the properties or offer services to banks to help them rent out their foreclosure properties so they don't have to take a serious haircut and substantial losses - or - you can buy up tons of properties; foreclosures, short sales, REOs, and other deals and run the company like an income property REIT. You can buy deals, sell at market peaks, re-finance as needed and since you control the inventory, you can wait and pounce on just about any opportunity, without risking your own capital, better yet, if you build it up and sell it to the fishes (IPO) you are already paid, what do you have to lose?
The second article shows that there must be some money in it, because all the big boys are out playing in this new game. Indeed, it is a viable solution to all those "house flippers" who artificially and temporarily held inventory, it also keeps old inventory off the market, which is just as well because so many homebuyers have lousy credit ratings due to job losses or having owned a home which was foreclosed on either for strategic default reasons or because they couldn't make the payments on an arm loan.
With all the high student loan debt and college kids graduating with advanced degrees straight into a job market as economically enslaved workers, they will be able to buy a home for quite a while anyway, they may as well rent-to-own well they're just starting out, getting married, and building a family. Please consider all this and think on it.
Lance Winslow has launched a new provocative series of eBooks on Future Business Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
Article Source: http://EzineArticles.com/?expert=Lance_Winslow
Article Source: http://EzineArticles.com/7911125
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