Do you feel stuck? Do you need to sell your home but yet don’t have anywhere to go? There are several reasons you could find yourself in this situation and the easiest solution is to find an investor to buy your house and rent it back to you. Rent-back agreements are not uncommon in the investing world and they can help you financially, time-wise and allow you to stay in your home.
Reasons an Investors Would Be Willing To Rent Your Home Back to You
While a traditional buyer often feels leery of taking on the risk of a rent-back agreement, a house buying company or an investor has much more experience working out the terms of these unique agreements so they are more open to finding solutions that fit your situation.
Having an investor buy your home and then rent it back to you can be the perfect solution for you if you:
- Are building a home that has been delayed, leaving you without a home to move into
- You need the money from the sale of your current home to provide the down payment on a new home
- You can no longer afford your home or you are behind on payments but you would like to stay in the house and neighborhood you love
- You are going through divorce and need to divide assets but don’t want to move out of the house yet
- If you’re behind on mortgage payments and need to sell but don’t want to move
- You have a job that is relocating you but you need time to find a new home
Terms and Conditions for Selling Your House and Renting it Back
An experienced investor would write up a rent-back agreement that would go into affect upon closing on the house — they are now the owner and you are the renter, so expect the agreement to have some similarities with a traditional rent agreement you might sign on a property. The benefit of working with an investor is being able to customize your agreement unique to your home sale and situation. If you reach out to an investor about buying your home and renting it back to you they would talk to you about the rental time frame, the rental amount, utilities and insurance, maintenance and home access.
Perhaps the biggest question is: how much will they charge in rent? If the rent price is greater than your mortgage then it doesn’t work out in your favor to stay in the property after all! Working out the rent is something you will do with the investor before signing the contract. Gary with Gary Buys Houses promises to work out a win-win rental agreement where you can live in your home for up to a year at below market rent.
Time Frame for Renting Back Your House
With a traditional home purchase the lender often requires the buyer to occupy the home within 60 days of purchase. Selling your house to an investor does away with that detail because an investor like Gary will pay cash for your home, no need for lenders and middle men, and, as an investor, he has more flexibility in setting the terms for a time frame. Gary allows home sellers to live in their home for up to a year at below market rent. If you are looking for a longer time frame then that then you could talk to Gary about his lease back program which is more long term, allowing you to lease back your home at below market value for 2 years, going to market value on year 3. Gary also offers a buy back program for people who need time to repair their credit and fix their finances in order to buy their home back. You could live in your home with a lease back agreement and a plan in place to purchase your home back after that time period.
Utilities and Insurance
Generally in a rent back agreement as the renter you would keep the water, power and electricity accounts in your name so you can seamlessly continue paying on the utilities you use. These details can be worked out between you and the investor in your agreement. With insurance you will want to reach out to your insurance company to see what type of coverage you can get, such as renters insurance, to cover your possessions while living in the home. Utilities
When will you transfer the water, power, and electricity accounts to the new owner, and who pays for the usage during your rent-back period? Come to an agreement with the buyer and put the details in writing.
Find a Trusted Investor In Utah
It’s important that you work with a trusted investor and that you get educated on how selling a house to an investor works before entering into an agreement. You can read a guide we wrote here all about selling your home to an investor. Gary is a trusted real estate investor with years of experience working with people just like you in the state of Utah. If you need to just stay in your home short term he even offers a sell now move later program so you can have 30 days rent free to stay in your property after selling. Contact Gary today to see how he can help you to stay in your home with a rent-back agreement.