Are you a Tired and Frustrated Landlord?

Whether you are a seasoned pro or you've become a landlord for the first time, you will probably agree that having an investment property is no walk in the park! Many landlords today are suffering financially as they negative gear their investment property while providing the tenant with a lovely life style for a fraction of the cost of the mortgage.

The responsibilities of having an investment property the traditional real estate way are quite huge. You, as the landlord, are responsible for providing at your own cost a safe living environment for your tenants to dwell in and use. Dealing with tenants calling day and night with maintenance issues, potential lawsuits, vacant properties with no income, evictions, vandalism, further negative cash flow due to expenses for maintenance, irresponsible tenants damaging your investment, etc, can give you an ulcer before you know it.

Would you like to know of a way where you could actually sell your investment property to your tenants, with no real estate agent fees or commissions and achieve the price you want? A flexible terms sale can provide these answers plus more. When selling your investment property using a flexible terms sale, your mortgage repayments plus all of the expenses (maintenance, council rates, etc) are fully covered by the tenant/buyer. Your investment property instantly becomes neutral or positive instead of negative - costing you nothing! Your cash flow can be freed up again to use for your own family instead of crippling you by feeding an investment loan that will benefit you sometime in the future (if you can hold on for that long!)

The quality of the tenant/buyer that comes to the table when selling using a flexible terms sale is of a high quality. These tenant/buyers come with home ownership in mind. For them, to look after the property as it were there own as well as doing improvements (with your permission of course) adds value to the  property, putting the tenant/buyer in a strong position to obtain bank finance at the end of the agreed term.

Rent to Buy buyers come to the table unable to obtain bank finance. The reasons for this are varied. They may have no deposit saved, have spotty credit or even be bankrupt. Maybe they are self employed but not for long enough to fit the banks criteria. They may be new immigrants to the country. Whatever the reason, many of these people have great incomes to be able to support a mortgage. They are just needing someone to be flexible with terms with them - they are looking for an opportunity, a foot in the door.

By being flexible with terms we mean allowing the tenant/buyer to take over your mortgage repayments and all expenses for a period of time anywhere between 2 to 7 years (though sometimes longer depending on what the buyer is needing to fix up before fitting into the banking criteria). Usually 5 years is all that is needed. This term becomes just like a delayed settlement. All terms agreed upon, including the sales price are documented into the legal paperwork. Each side is represented by their own independent legal advisers. The Contracts are exchanged, but do not settle until the end of the term. In a 'normal' sale, Contracts would usually settle in 4 - 6 weeks if bank finance is being used to purchase the property. In a Rent to Buy sale, Contracts do not settle until 2 to 7 years down the track (sometimes can be longer). Exchanging the Contracts sets the deal legally in place. The property stays in the landlords name until the time comes when the tenant/buyer are ready to settle.

The conditions that the tenant/buyer require to be able to complete and settle depend on their individual circumstances.

If the tenant/buyer had no deposit, they would be waiting for capital growth to become available in the property so they can refinance this out as their deposit when they apply for bank finance so they can settle on the exchanged contracts. To help with capital growth over a 7 year period, these tenant/buyers would maybe do the gardens up, paint the property, etc - do minor improvements to add value to the property over time.

If the tenant/buyer had spotty credit, they would be waiting for their credit file to be cleared of whatever the issue/s were to be able to present themselves to the bank and gain finance.

Any capital growth that occurred during the length of the term agreed upon would be gained by the tenant/buyer. The price of the property is always documented into the paperwork at the beginning of the deal. 

The advantages to both sides entering into a flexible terms sale are great.

The landlord has the security that his property stays in his name during the length of the term (in 3 of the Rent to Buy deals available) - should anything go wrong with the tenant/buyers repayments. The landlord is achieving the price he is wanting with no commissions or fees being charged to him to sell his property.

The tenant/buyer is being given the opportunity to enter into home ownership regardless of his circumstances which are preventing him from obtaining bank finance.

Both sides are thoroughly covered as both sides have obtained independent legal advice and have documented everything agreed upon into the paperwork, including the property's price.

If your investment property and the negative cash flow that it is draining from your wallet is giving you headaches - selling it to your tenants using a flexible terms sale may just be your answer.

Our DIY Rent to Buy manual explains in full all the Rent to Buy deals avalaible, promoting an opportunity to anyone who is looking to achieve the best possible results from their real estate transaction.