Can I sell my home and rent it back?
You are in a situation right now, where you need the cash but do not want to move. This happens a lot such as when there is a family emergency, medical bills or some devastating situation that requires to you get cash for your home now. Most home sales typically begin where you sell the home and move out immediately after the sale is complete. However, in this case, you do not want to leave the home and prefer to stay for a year or more. You prefer to sell your home and rent it back
- Kids attending school
- You prefer to live in your neighborhood
- You have critical business that needs to be done where you live.
- Unforeseen medical expenses
The list can go on and on and there all over ready to buy your home and rent it back to you.
The Terrifying Reality
It’s a scenario in which anyone can locate themselves; unforeseen medical expenses pop up, you end up close to losing your house to numerous conditions out of your management or foreclosure. Unexpectedly, you want the cash that’s tied up in your house quickly but:
You don’t have time to locate a Realtor, record your house and expect a buyer comes through with a productive and speedy deal.
You don’t have the ability or the desire to move from the house following the sale.
There are real estate investment companies out there that give you options when you’re seeking respite from a similar scenario, although it may not look like it.
Sell and Lease Back Plans
Many real estate investors offer to purchase your house, regardless of what mortgage scenario or the equity amount, and can even lease it back to you. Sometimes, the investor will even rent with the option of selling your home back to you should your scenario improve, called a lease option.
In these situations, a property investor permits you to stay in the house as a lessee and will save you the time and pressure of selling your house as you otherwise would, using a Realtor and a regular listing that will cost you money.
This option is perfect for individuals whose houses are in danger of foreclosure. Many folks can get refinancing, or a home equity credit line (HELOC) for flexibility, but in the most extraordinary instances, the equity might just not be there to haggle with.
Things you should be aware of.
The real estate investor wants to gain from a possible deal. Take note that if you consent to a sell and rent-back agreement or arrangement, you’ll probably be selling your home below its market value, to some level. Determined by the details of the deal, the investor may additionally choose to bill you a rental rate above what similar sized houses in the exact same region are being leased for. The reason being the investor is making a profit off of your house in exchange for freeing you from the legal and constant duties of owning a home.
Beware of prohibited practices. By way of example, if you locate an investor that’s willing to drive a short sale of your property and sell it back to you at that reduced cost, “this is fraud”. If the liens in your property are too much for you or you are in arrears with your mortgage, explore government plans designed to help you in these scenarios.
Sell and rent back agreements are a godsend for those in desperate need of liquidity or in danger of losing their home, but still, keep an accessory to their lifestyle and their house. Once you’ve exhausted other alternatives and you’ve found your equity is not too stable to get you a fresh line of credit or a refinancing arrangement, a sell and lease back plan may be the only alternative to save you from your grave scenario.
Complete the form below should you be seeking someone to purchase your house and lease it back to you for any reason or contact our offices at 1 844 466 3949 to see how we can find a solution for your property. We will do our best to pair you with one of our investors so that you are given a fair deal in exchange for selling your house and renting it back all at no cost to you. Give us a call to find out what we can do for you.