Posted Tuesday, April 20th, 2021 by Richard Roy
Rental scams are ever-present. In April, the Shelby County Sheriff’s Department indicated that five or more people had each been caught up in a rental scam. Each had been scammed out of many thousands of dollars. This was a case where deceptive ads have been placed on Facebook marketplace. In one of the cases, a woman said she found the “perfect rental house”, and when she contacted the person behind the Ad, a man claimed to be the owner of the home.
We’ll have more stories of the strange, but true.
Brett and Glenn discuss how they are currently assisting investors with tenant-occupied property, to sell their homes while property values are at an all-time high. In the crash, we had a number of investors or even homeowners that had to leave their homes for jobs, so they turned their homes into rentals or they purchased homes for pennies on a dollar because they were in foreclosure mainly.
I’m dealing with one right now it is over in the East Memphis area. So this investor decides they want to sell. They’ve owned the house for 10-years, and it’s gone up significantly in value, almost $90,000 in value, versus what they purchased it for.
So they want to sell, but the problem is they have a tenant that’s going to be in there until November of 2021. So they contacted me and, as we’re talking, it’s like, well, I’d like for you to just go ahead and evaluate the house and let’s put it on the market in November. Well, I put the brakes on right there. I said, ”Listen. Right now inventory is low and the market’s hot. Everybody’s paying over the asking price for any house that goes up for sale, and it’s gone in a day.” I said, “If you wait until November, the record high housing prices are likely to end and you’re not gonna have the advantage of the hot buying season. So the number I’m giving you today could shrink because, as we have more inventory than buyers, property values and purchase prices are going to level back off back to what they should be.”
People want to purchase no later than July to get their kids into school in August. That part of the market tends to level off, or cool off, in August or later. This then gives investors a greater opportunity to buy.
I’ve done this five or six times now, so what I’ve been able to do is, I’ve contacted the property owner and told them the current home value. Here’s what you are probably gonna sell it for, you’re gonna get over asking prices, and here’s your net. They like those numbers. But there’s one big problem… there’s a tenant still sitting in the house until November! So what I’m able to do? Listen in and find out.Be Social:
Real Estate Investing Podcast.