3 Reasons To Sell A House On A Lease Option

 

Today I’m pleased to have Mike Otranto join us to do a guest post. 

Mike Otranto is an active real estate investor in North Carolina and has extensive experience working with people with all forms of seller financing.  Today Mike will be discussing a few of the advantages of selling a house with a Lease Option.  For more information on what exactly a lease option is check out our last Q & A Saturday Video where we discussed what they are.

3 Reasons To Sell A House On A Lease Option

There many reasons why a home may sit on the market unsold.  Sometimes when you need to sell a house fast you need to explore other options if things don’t go as planned;  Below are some common situations where selling a home on a lease option is a great way to sell faster and for more money.

 Lease Agreement for Lease Option - MA and NH Real Estate

Little or No equity

When a home has a high mortgage balance relative to its market value it can be very difficult to sell.  As an investor, I always assume at least 10% of the gross sales price as the cost-of-sale.  These costs include agent fees, attorney fees, buyers closing costs, recording fees etc.  So, let’s say you own a home that has a fair market value of $350,000 and your mortgage balance is $335,000.  This would mean that you may have to pay up to $35,000 in closing costs.  Are you prepared to come to the closing table with a check?  By selling your home on a lease option you can have a tenant buyer in place paying your mortgage and reducing your principle balance every month.

Moving Away

Many times a job transfer, divorce, illness in the family, or loss of income can make an owner have to relocate abruptly.  Sometimes this relocation occurs to another state.  Many times this leads to a vacant house which can have serious consequences.  Increased insurance costs, having 2 house payments, theft and vandalism, landscaping and other maintenance costs can wear away at a person’s income and savings.  It is much easier to have a high quality tenant buyer in place to take care of the homes and help pay your mortgage every month. 

Too Much Repair

Often times when a property falls into disrepair it becomes unmarketable to the general public.  Buyers have difficulty seeing past the outdated kitchen, worn and stained carpeting, scuffed walls, old bathroom fixtures, etc.  If you can offer the home for sale on good terms you can get a high quality tenant in place that will upgrade the home for you. 

These are just some of the ways that a lease option can help sell your home fast.  Remember that the worst thing to do if you are in a tough situation is to do nothing.  Contact a trusted real estate company in your local area like Mass Home Sale.  Empower yourself with knowledge and then take action!

 

 

Mike Otranto has been an active real estate investor in the Raleigh N.C. area since 2005. He began with 2 – 6 unit multi-family properties in downtown Raleigh and has since moved is focus toward single family residential properties.  Always up for a challenge he shuns the long term mortgages offered by commercial banks in favor of creative financing strategies such as subject-to transactions, owner financing with purchase money mortgages, long term leases with option to buy, equity options and more. He also holds a NC Brokers License. Visit Mike’s webpage at http://MikeOtranto.com or catch Mike on YouTube.

 

 

(Image credit: Lease Agreement via rentpost.com)

 

 

Demystifying The Probate Process

Today I’m pleased to have Sharon Vornholt join us to do a guest post. 

Sharon Vornholt is Founder & CEO of Innovative Property Solutions and has been investing in real estate since 1998 and has been involved with the industry quite awhile before that.  Sharon has extensive experience working with people dealing with probate and will demystify the process in today’s article.

(Please note that every state will be a little different.  While Sharon gives a great overview of the process she does not work in Massachusetts or New Hampshire so please talk to a good attorney in your area to get all the details for your particular situation)

—————————————————————————————–

Wills and Probate - MA and NH Real Estate

The Probate Process

Settling an estate can be very confusing especially if you have never been involved with the probate process before.  The terminology is confusing, the timelines are unclear, and most of the time folks just don’t know where to start.   All of this comes at a time when emotions are raw and the family is overwhelmed.  Having property to sell that is part of the estate is just one more thing on your plate during what is already a difficult time.

Local real estate investors provide a valuable service for people in this situation.  We can make the process of selling the property in the estate a hassle free experience so you can move on with your life.

Today I would like to try to simplify the probate process and explain some of the terminology that is commonly used during this time.

Breaking it All Down

When you break down this process in its simplest form it’s not really that difficult to understand.

There are 5 main steps:

  • When someone passes away there is a petition for probate
  • An executor is named in the will or the court appoints an administrator
  • The assets are sold to pay any creditors
  • The heirs get what is left after the assets are sold and the creditors are paid
  • The estate is closed

That’s it in a nutshell, but today I would like to expand on this a little bit more.

The Petition for Probate

Probate is not only the process by which the will is executed, but it is also the process by which the will is validated.  The Petition for Probate is a document that is filed with the court generally along with the will so that the wishes of the deceased can be carried out in accordance with the instructions in the will.  In most states an individual can get this form from the probate court however there will be many documents to be filed with the court during the probate process so a probate attorney will most likely be needed.

What is the Difference in the Executor and the Administrator?

These terms tend to cause a lot of confusion.  When someone passes away and a petition for probate is filed, what happens next will depend on whether or not there is a will.

Testate describes the situation where there is a will and the deceased has named someone in the will to act in all matters concerning the estate. This person is called the executorof this estate.

Intestate describes the situation where there is no will.  If there is no will, then the court will appoint someone to administer the estate and this person is called the administrator. This person is often a family member.

The duties and responsibilities of the executor and the administrator are the same.   The only difference in these two titles is that when there is a will the deceased has personally chosen the person(s) that will make all of the decisions regarding the estate.  In the absence of a will the court choses someone to handle these duties. I might mention that this person is also sometimes referred to the PR or Personal Representative in both cases.

Selling the Assets

In order for any creditors to be paid and the heirs to receive their inheritance, the assets in the estate must be sold.  This includes any real property as well as things like jewelry, personal possessions as well as stocks and bonds.

Laws vary from state to state but in general the house can be sold once the probate process has begun.   You do not have to wait until the process is finished. In fact it can’t be completed until the creditors have been paid. Once this is done, the heirs inherit anything that remains and the estate can be closed.

Finding a Good Probate Attorney

In some cases, the executor and family members may be able to take care of many of the things required to settle an estate.  However it has been my experience that you will need a good probate attorney for some if not all of the things that need to be done depending on the complexity of the estate.  An attorney will save you a great deal of time, and they can advise you on the legal aspects of the process along the way. Probate attorneys generally charge a percentage of the estate for their services.

Once everything is completed, the estate will be closed. Tax forms will need to be filed so this is another reason you might need the guidance of a probate attorney.

With just a little bit of knowledge, you can move forward with this process and hopefully remove some of the stress at the same time.  

 

You can learn more about Sharon and read more by her on her Blog: louisvillegalsrealestateblog      

 

Do you need to sell your Massachusetts or New Hampshire house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

 

(Image credit: Wills and Probate, via the Williamsons Solicitors Website)      

 

Benefits of Adding a Professionally Installed Composite Deck

  In today’s post we are happy to have our first guest poster.  In this article Mr. Smith will go over the benefits of adding a composite deck to your house.  This continues our series on home improvements and is in harmony with our recent articles, the “We Love the 80s!” house and the “Neglected Rental” house, where we examine the benefits vs. costs of fixing up a house before selling.  In that vein adding a deck is one of the best returns on investment at 81.5% for the Boston region, covering most of Eastern Massachusetts and Southern New Hampshire.

—————————————————————————————

Benefits of Adding a Professionally Installed Composite Deck

MA and NH Real Estate - Composite Decking

Want to add a beautiful, functional deck to your home to enjoy with your family and friends? Are you worried about the expense, maintenance factor, and how long it will actually last? You’re not alone. Many homeowners today are turning to composite decking materials based on many key benefits. While hardwoods like redwood and cedar make an appealing deck, that can’t compare to the durability and longevity that a quality composite deck can offer. Decks constructed with top products like TimberTech, Evergrain, and Trex are easily installed by professionals, pleasing to the eye, and have shown they can stand the test of time making them an easy choice to use in order to build the deck of your dreams.

Composite decks are simple to install

Composite material is specially designed for deck building, which means it’s super easy to install with less work. Several composite decking materials consist of tongue-and-groove style design, making assembly a breeze.

Composite decks are less expensive overall

Comparing a price list for composite decking material and wood products can be very misleading and confusing for a consumer. While the upfront expense of composites is somewhat higher, there’s virtually no cost for upkeep in terms of elbow grease or money. Composite decking is maintenance free. There’s never any need to re-stain, re-paint, or re-seal them once they’re installed. On the other hand, you may pay as much as $3 a square foot for a quality renovation each year, and much more every 12-15 years for resurfacing the entire deck. Composite decking only requires a good hosing-off occasionally and some sweeping. Most composites are stain-free as well.

Composite decks are conducive for bare feet

One of the best parts about summer is walking around outside in your bare feet. Who wants to wear shoes on a beautiful, warm sunny day? Composite decking doesn’t heat up like other decking materials no matter how hot the sun gets. Also, they’ll never splinter and cause harm to feet and hands like wood can.

Composite decks have a uniform, attractive appearance

Because composite planks are manufactured specifically for decking materials, they’re completely uniform in their appearance, free of bumpy grains or knotholes that can make restoring a wood deck quite difficult. Place your big, beautiful potted plants and outdoor furniture wherever you like. Unlike wood, they’re not needed to hide unsightly imperfections in the material. The planks never warp no matter how much rain, snow, ice, or hail Mother Nature throws at them.

Composite decks are eco-friendly

Aside from the fact that composite decking is made from recycled plastics and reclaimed wood that would otherwise end up in a landfill somewhere, composite decks never require products to preserve wood, which can ultimately leak into groundwater and soil. Installing an attractive, durable composite deck may cost a bit more upfront, but you’ll save endless hours of both time and money overall.  

Tim Smith writes for Modernize.      

 

Do you need to sell your Massachusetts or New Hampshire house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.