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HERE ARE THE PROGRAMS I OFFER
PROGRAM 1 - RENTAL
This is obviously the most common form in America. The good
thing is you do not have to have any credit, you do not have to worry about repairs on the house, and with no money down,
you can just move in. The bad things are, you do not build any equity by paying rent, and you do not build up your
credit and the rent is not tax deductible. But for many people renting is perfect and I have many rental houses in prime
areas in Louisville, Kentucky. I always keep my houses in good condition and I am available for repairs 24 hours a day,
I promise! I also accept pets, short term and no/bad credit and section 8 sometimes. Look on my "Property for Rent"
page for my current houses for rent.
PROGRAM 2 - LEASE/OPTION
This program is great if you want to rent, but you think you might
want to buy the house in the future, because you can rent the house and a portion of your rent is applied to buying it when
you want to buy it. So your rent is helping build equity. Most of the lease/options I do require a small amount
down at the beginning (like $2,500). This is your option. When you give me that option, I will rent the house
to you and give you a contract to buy the house at a later date. Now you just live in the house and pay me rent every
month. If you pay $900. a month then some of that will be credited toward the purchase of the house. Say $200
a month for example. So if the contract says you will buy the house in 24 months then you will have ($200 x 24 months
= $4,800) credit off the purchase price. Plus your option of $2,500, you gave me at the beginning. So if you are
on contract to buy the house for $100,000.00 then you actually only will owe me $92,700 at closing. And the monthly
payments during the lease are tax deductible. And you wwill not be responsible for maintenance and repairs during the
contract. The bad thing is, if you do not or cannot buy the house from me by the end of the lease/option contract, you
will lose your option money! I have never had that actually happen though! I have done a few of these and they
have all worked well. In most cases I help you get a loan so you can buy the house from me well before the expiration
of the lease/option contract. See my "Property for Lease Option" page for my current Lease/option houses.
PROGRAM 3 - LAND CONTRACTS
This is my personal recommendation as an alternative to renting and
buying. Essentially you are renting to own. You must have at least some credit (bankruptcy is ok). You must have
some money to put down. First we find you a home that you like. Then, I will buy the house from the seller and
let you move in. Then I do something different than most investors who just do "lease/options" NOTE: LAND CONTRACTS
ARE DIFFERENT FROM LEASE/OPTIONS. What I do differently is that I record the deed on the house in your name, at the county
courthouse. So, now you own the house. I am just the lien holder. Now you just live in the house and pay
me every month. At sometime during the contract with me, we will go to a conventional bank (like Bank of America) and
try to get you a "real" 30 year loan on the house. The bank will not require any more money down, or particularly good
credit, since you already own the house. You are really just refinancing the loan that you have with me. Remember
I will walk you through each step in this process. And rest assured, I have already done several of these with great
success. The most important things are; keep your credit good while you are living in your new house, always pay me
on time each month, always keep records of all payments you make, and keep your house in good condition so when you apply
for your new loan it will appraise for enough. In some cases I have even had people lease on land contract from me for
only a year and then get a loan with a bank, and when they did the house was re-appraised and we noticed it had appreciated
so much that they were able to pay me off and still walk away with cash. This was amazing for me and for them!
For land contracts, you select the house that you want to buy, just like a typical home buyer. I am a realtor/agent
in Louisville, so I have all the tools to help you find the house you want to buy. Once we find a house that will work
we are done. The main thing is you. If you qualify for the land contract, then the rest is easy!
I can also assist anyone with buying or selling any real property.
Although lately I have been specializing in the land contracts. I also can help you invest in real estate and rental
property, since I have done so much of it, I can show you how to do it, etc.
Call me any time ...I want to help as many people as I can! Yes,
I make money too, so it works for everyone. The main thing is getting in touch with me. I help people from any
where in America, but so far I have only bought property in Kentucky and Florida. If you need an alternative source
for financing, call/email/fax me anytime!
Mike Howard
Direct Line (24hours) 502-777-5246
Fax 502-228-3587
Email mike@rent2ownlouisville.com
Market Update - Late 2009
Will Economic and Real Estate Improvements continue??
The housing market has improved in the 2nd half of 2009. The
values of real estate have fallen to the lowest levels in 5-10 years in many cities in the USA. This means that you
can buy property at the same price you could have in 1999 in some areas! Most areas are now seeing prices going
back up…slowly. In my opinion the prices will continue to go up 2010 and we might even see price spikes in some
areas. This is happening because interest rates are very low and there are lots of government programs for first time
buyers out there now. The Obamba administration is doing EVERYTHING it can to stop the recession. Some of
the "rescue" programs have worked and the stock market has rebounded well. The big question is now…will
we have massive inflation in 2010? The odds are that we will have some inflation in 2010 and prices will go up
on many of items that we Americans buy. But with continued unemployment because companies are cutting back to save and
rebuild the money they lost during the recession, inflation might be kept at bay. With many Americans out of work and
low on money to spend, inflation may be tempered during the next several months. Here In Kentucky, we have survived
the recession better than most of the USA and real estate values in most areas have only declined slightly. If there is some
inflation in 2010, housing values in our area might go up at higher levels than we have seen in a long time. So if you
survived the recession and still own a property you might be in luck in the next year. Prices will be going up and if
your property hasn't lost much value in the last two years, you might see abnormally high levels of appreciation in the
next couple of years as the market "snaps back."
There are still tremendous risks though. The next financial bubble could come sooner than
you think. Even though a year after the collapse of home values triggered this massive recession, another rapid and irrational
rise in the price of assets - whether stocks, home values or oil - might seem unlikely. But investors are still fixated on
short-term gains over long-term performance. And information now travels instantly because of the internet. This
is fueling a "herd mentality" when it comes to investing. So the highs are higher and quicker than they ever have
been and the lows are the likewise. Its kind of like the weather has been lately "more extremes on both side than
ever before." Bubbles feel good when they're inflating, but that isn't a replacement for the slow-and-steady
growth that makes for stability in the economy. Reckless stock day-traders were blamed for the Internet stock bubble crash
at the beginning of this decade and unqualified home buyers and real estate speculators got blamed for and the still-deflating
housing bubble that caused this most recent recession. And now a surge of global capital seekers looking for the quickest
and most profitable investments like hungry ants coming from a 3 foot tall ant hill could be the next problem for our economy.
Over the past 30 years the value of financial assets grew to be four times larger than annual global gross domestic product.
This means there is too much money in people's pockets to invest and not enough products being produced by those people
to make up for it. To sum up, it looks like forecasting the economy will be like forecasting the weather more
than ever in the future!
At Rent2ownlouisville,
we have had a record year in 2009 and we have helped numerous people get into home ownership with our Land Contract program.
In the current economic situation with real estate at 5- 10 year lows, it is a great time to buy and if you cannot get a loan
because of the strict bank guidelines now in place, we can help! We will get you into the property you want to buy right
away, even without using a bank with our rent2own programs. If you cannot come up with the money to enter our Land Contract
program, we recommend renting to start. We can put you on a short term lease in any one of our properties and then begin
a search to find the property you want to buy. Once we locate your home, we will purchase it from the seller and you
can move in and lease back until you are ready to get a traditional bank loan. When you are ready to get that bank loan,
we will transfer the deed/title to you so that you can "refinance" and get a loan in your name, with NO MONEY DOWN!
The is what gave us our name "RENT 2 OWN". We have done this for many people in 2009 with great success.
In 2010 we will continue to offer all of these programs for our customers. Call us or email us anytime for more information!
Best Regards,
Michael Howard
President
- Rent2ownlouisville
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