Josh Barnett's Q&A

Everything is on the table when it comes to Real Estate.  Most times that you find "rent to own" is when you have a seller who is in the industry.  As a buyer, as yourself, "why would a seller take payments over a period of time rather than a lump sum a closing," would you want to finance someones home purchase?  This is what the seller is doing when you sign up for a "rent to own."

I agree with Maria, the Market is the Market, if your system is not up to par, the buyers inspections will find that out.  When selling a home, you have to be the best in todays market. 

Built up roof membranes, referred to by the acronym BUR, have been in use in the U.S. for more than 100 years. These roof systems are commonly referred to as "tar and gravel" roofs. BUR systems generally are composed of alternating layers of bitumen and reinforcing fabrics that create a finished membrane. The number of plies in a cross section is the number of plies on a roof: The term "four plies" denotes a four ply roof membrane construction. Sometimes, a base sheet, used as the bottommost ply, is mechanically fastened. Built up roofs generally are considered to be fully adhered if applied directly to roof decks or insulation. The reinforcing fabrics also are called roofing felts or ply sheets. Roofing felts are reinforced with either glass-fiber mats or organic mats. Felts are produced in a standard width of 36 inches and metric width of about one meter. The bitumen typically used in BUR roof systems is asphalt, coal tar or cold-applied adhesive. The asphalt or coal tar is heated in a kettle or tanker and then applied by mop or mechanical spreader. Asphalt is a petroleum product refined from crude oil; coal tar is derived from the distillation of coal. Cold-applied adhesives typically are solvent-based asphalts that don't have to be heated in a kettle or tanker. Read this article at http://www.nrca.net/consumer/types/bur.aspx.

After glancing over everyone's replies, they all make sense, but it comes down to, at least in Oklahoma, if you have an appraisal performed on your home, it will be in the appraiser's data base for at least 6 months, if you do not get the number you want on the appraisal, you will not be able to have that changed for at least those 6 months, and with the way appraisers have been acting, it probably will not go up, possible down, because they are trying to force Real Estate prices down right now, our government. As far as the inspection, you know if there is something wrong with your house, unless you have not lived there.  Have what needs fixed, fixed right by someone who is licensed or been in the business for quite some time and check references!!!!!  Unless you are just clueless and do not know when something is broke or not, don't waste money on a pre-inspection. 

I wouldn't recommend having a pre-appraisal; appraisals are different for every situation.  The definition of a Market is a willing and able Buyer coming to an agreement with a willing and able Seller.  A pre-appraisal will not do any good accept to set a price ceiling on your property.  A pre-inspection has its positives and negatives.  Negatives, you are going to have to fix what is found on the inspection or disclose that it is not working properly and more than likely the buyers inspector is going to still find more items not up to par.  Positives, most items will be fixed on your home and it can give buyers some piece at mind knowing they are working with a seller that cares. 

An easy and quick guestament on the cost of selling a home is 8% that is 6% Realtor Commissions and 2% Seller closing costs.  Now of course this number is different for every transaction (i.e. how much seller paid buyer concessions, Repair Cap, DPA...) all the items associated with Real Estate are negotiable.  If you need a more specific estimate, just send me the properties Sales price and I can give you an estimate based off of Oklahoma State Norms.   

Every lease to purchase is different, just like every Real Estate Contract is different.  To give you better piece of mind in regards to the buyer not coming through with the purchase at the prescribed date you can request a higher, "non-refundable," deposit.  This will lock the buyer in more, with the thoughts that they have more to lose if they do not purchase said property.  To ensure the contractors are paid, you can inform the purchaser's that you require a "lien release" form once work is completed.  As far as a calculator to figure out if a deal is fair to both parties, I do not know of one.  The definition of a market is when a willing able buyer and a willing and able seller are able to come together and make a transaction.  You can make the purchase price 3 to 4 percent higher than today's market value and you can write up the contract to reflect if the lease payments are applied toward the primary or not.  This will aid, in coming up with the Future Value of the home.When it comes to lease purchases there are no set rules or guidelines other than local and state laws (these are general contract laws, not specific lease purchase laws).One thing you have to keep in mind though, if you are emotionally attached to this property, you should sell it out right, rather than follow through with the lease purchase.  When performing a lease purchase you have to have the mindset of a Real Estate Investor, not a home owner, or you will drive yourself mad, trying to micro manage your tenants.I hope this helps, Josh.

You have to take the market that you are buying into consideration, most markets have bottomed out, some may have a little more to lose, but some are also holding value.  As the NAR states on their commercials, Real Estate is local, check with your local Realtors to find out what they think about the market.  Every single neighborhood has different prices and conditions affecting the property values.  If you are investing in Real Estate, you must ensure you will have Cash Flow, not appreciation, currently.  If you are buying the home to live in and use for your family, prices are looking very attractive for buyers.  Hope this helps, Josh.

hahaha, I see what you are saying now, I have not delt with that before, I would just send them an email in the contact us button then sit and wait, sorry, Josh.

If you can show that he is paying, i.e. bank deposits or cleared check stubs, and the longer the history of the payments the more reliable the extra income looks to a lender.  When proving your case, you just have to provide evidence, the lender will judge everything and make their decision.