The Hidden Demand

We are still in a buyers market, it will probably years before it turns for the good. Don,t get over anxcious because of a few houses being sold nationwide. The pockets of Realtors, real estate investors and sellers are still in need of replenishment. Getting a house sold can be very difficult in a buyer's market. However think about this; there is this hidden demand out there and you need to tap into that demand. We have been talking so long about the low demand for houses that we are losing sight of the demand occuring underneath the surface. So what is the underneath demand? Think...there are plenty of displaced homeowners out there. We know pretty much how they got there and now having been kicked out of their homes need to find somewhere else to live. They didn't become molds or lived in a box. They went straight to the strong rental market.

Do homeowners see themselves as a tenant or do they see themselves as homeowners that are temporarily renting. The answer should be easy to ascertain that they really want to be able to own a house again. We have to do is create a deal where they can become homeowners again. Now some of these people have actually accumulated cash. They were foreclosed upon which means they weren't making their monthly mortgage payments. The banks wouldn't even accept their payments even if the owners sent them in. What happens is they start to payoff debts and start to accumulate cash. Most of these people know they into the house well over their heads because someone told them about a tremendous program and sold them into a bigger house and mortgage than they could afford. Other than that they were credit worthy and now want to get on the right track to get their lives together. They been accumulating cash, paying down bills and now have some extra cash. But because of the tarnished credit rating, they lose self esteem and fill that getting a new loan will be impossible for quite sometime. So imagine the hero someone would be when they come up with a proposal for these desolate people to buy a home again. The media enforces the idea that banks are tightening their lending practices. But also remember this foreclosure was a result of too high a mortgage payment. There are people that had great credit prior to this particular situation. Now they need the right size home and one they afford. If this should happen they will be able to afford the expenses. They then become a good credit risk and the right people to get back on the right track.

One of the ways to achieve that is using the lease options. What happens is when a person meets these criteria, good credit prior to foreclosure, they could be offered a home and they are given a longer time to purchase. Maybe they'll be given two or three years and then be able to purchase back the home they leased optioned. They will probably incur additional down payments. This instrument is not difficult to understand but there are other contingencies involved. This is a great vehicle for all players involved. The future homeowner or tenant gets to purchase his home and the investor/owner uploads the property. A win win situation.


George Benton:Author
web:http://www.webrealestatebuyers.com
tel:203-354-3089

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