New Year's Resolution for First Time Homebuyers

How many of you have told yourself that this was the last year you where going to rent?



How many of you are renewing your lease yet again?



Don't you think it's about time to stop thinking; and finally make the moves?



How many excuses can we find to keep paying rent?



I come in contact with many people in many different situations. Some have crappy credit to put it lightly. Others are of the 80/20 nature; meaning one of them has 80 percent of the credit and the other has the other 20, etc. Some are so well qualified that they assume anytime is a good time. There is a good number of young couples that are looking to stop wasting their money on their landlords mortgage; and putting that towards something better. What and how? Let me tell you about this scenario from just the other day...



There was a young couple New Year's day I ran into. It was kinda cold and they where looking for a place close to Decker lake and not far from Down Town. There is a little subdivision in the North East called Sendero Hills that was perfect. Take MLK East past 183 & you will see 969 on the left hill after the RR tracks. Sendero Hills is behind the awesome Agave homes on the hill overlooking Down Town. I showed them the house they wanted to see and a different home that I had listed on the same street. I was still a little shook from the New Year's the night before; but they were understanding. I showed them a great place, but we were not sure if his boat would fit in the garage, not to mention the grade up to the garage was steeeeeep!

They were talking about buying later and then I asked them "Why don't you both lease to purchase?" I explained to them that even if they were not married it was just a lease with an option. So it wouldn't be any worse than a normal lease. I'm glad I was able to give this couple a bit of insight as to how to convert your rent into a down payment!

Now think about your situation. If you are thinking about buying a home and on the fence; it would be wise to consider this:

If you pay $1000 a month in rent; then you pay $12,000 a year. Perhaps you ask for 50% of each months rent to be credited towards the purchase of the property. When? 1 to 5 years. At the end of 1 year you will have $6000 of YOUR rent that counts towards the purchase of YOUR new home. Many investors prefer this method over traditional market sales. They get tenants that care about the condition of the property and treat it like a home! When you close you ask the seller pay for a 1 year home warranty after you close! If you are fortunate enough to find someone that is willing to do this then do it! You are going to pay to live somewhere! Even if it's not what you "dream" about you can at least put your money to work for you.

So make Home Buying a resolution this year! I am and I'll keep you posted on my adventure.