All Forum Posts by: Corey Westermann

Just as an additional thought - if your furnace can accommodate a thicker filter, you can get by with changing them far less frequently.

Yep, possible but more complicated. 

The owner would be carrying a portion of the contract price rather than the whole thing. Not always an easy thing to convince a seller to do, as his loan will then be in 2nd position to the bank.

Unless you assume the existing mortgage or buy the house 'subject to' - you'll still need to pay off the existing loan at closing, using either cash or your own financing.

I'm sure others will disagree, but in my experience, quarterly inspections will get old real quick for your tenants.

Every 6 months, we typically just send our tenants an email with at least 24 hours notice that we will be doing a quick walk through for a smoke detector and plumbing check. 

My goal is to find a balance between protecting the property and building trust with the tenant, so we try to avoid any reference to an inspection or damages. 

I check all the smoke detectors (which gives me a good reason to go into each room), check all the plumbing fixtures and under sinks for leaks, and also make sure the furnace (or wall heaters) are clean and operational.

If there is any major damage or unsafe conditions that I notice while I'm there, I'll bring it up to them in writing once I'm home.

I've got a lot more info on Home Partners of America and their process since I first started this thread. They just started operating in the Portland, Oregon market so there's not many folks around here that have gone through the program. 

The program is legit - but the tenant/buyer needs to be very aware of all the costs that are going to be passed along to them. Part of the sales pitch most realtors will use when trying to sell a client on Home Partners is that they have the option to purchase the house they are renting for 5% above what Home Partners pays for it... But, by the time you account for their above market rents, a sizable initial repair budget (that the tenant/buyer has no control over what Home Partners decides to spend), maintenance and repairs while renting (yes, the tenant will have normal repairs and maintenance costs during their lease added to their purchase price), closing costs, and the company's 5% fee - you should expect a right to purchase price that is more like 10-15% higher than the original purchase price. 

Keep these things in mind: Your deposit (2 months rent) is due as soon as the house is under contract - with no real clear picture of what your final right to purchase price will be. Also - Home Partners will increase your rent and right to purchase price by another 5% every year that you are unable to get financing. You are only allowed to attempt to exercise your right to purchase once, and if something goes wrong your purchase right is nullified completely.

IMO, in most cases it would take a great deal of appreciation over the course of your lease in order to make it worth paying the full right to purchase price of the house that Home Partners buys for you to rent. 

Maybe, however, it's a decent option if you're desperate for a place to rent and choosing your house from the MLS is worth the inflated rent payment to you.

@Wayne Brooks

Thanks for the reply. Did any of the other agents in your office decide to partner with them? Any idea one way or the other whether they are a decent outift to get in bed with?

I have a close friend whose realtor has convinced him to apply for Home Partner of America's rent to own program.  I believe this company used to be Hyperion Homes.

He asked what I thought - I told him I had no idea.  Does anybody here have any experience with these guys or guys like them? 

Sounds like it would go something like this - They buy the house you pick, you agree to a 2-month security deposit and to rent it for above market rates, you then have the option to buy it after a year at 5% above their original purchase price provided you can finance it.

Are these guys and their programs legit? Is the process as transparent as they make it seem? 

Thanks in advance.

@Roy N.

I like the idea of sending good applicants to other nearby landlords - do you get the applicants permission prior to forwarding their contact info?

@Franklin Romine

Not overly concerned about backlash - everyone seemed nice enough. I think my initial hesitation with a phone call was that I don't have a real good reason to give them as to why they weren't chosen, if they ask.

Hi guys - I could use some advice. 

I've got a few rentals that I've been managing myself over the past 3 years, but this is the first time that I've received numerous qualified applications on the same day. Basically, I've got 5 applications for the house I'm renting. I conducted very thorough phone screenings and was very upfront regarding my minimum standards so they all are great candidates.

I realize that this is a nice problem to have, but I am wondering the best way to go about notifying the rejected applicants. They all know that they meet my criteria. 

How do you guys break it to rejected applicants - especially well qualified ones? By phone? email? Do you give them a reason? Do you use a form letter? I've heard of using a standardized form and checking boxes in their areas of deficiency - but in all honesty, the only reason they are being rejected is that the tenant I ended up choosing was is the one that I got along with best.

I want to avoid anger and/or backlash but also want them all to feel like their applications were well reviewed 

Thanks all. I obviously need to be more creative at the way I'm finding properties to offer on, as well as finding a way to line up proof of hard/private money before writing my offers. Thanks for the responses.