As a real estate investor, when there is a deal at hand, there is necessarily a contract involved. While real estate contracts may seem intimidating, taking the time to familiarize yourself with the terminology you’ll encounter is well worth the effort. You’ll want to have a full grasp of contracts or a trusted guide to review everything on your behalf before you enter into any agreements. This knowledge will help you feel confident and assist in making wise choices as your investment business grows. Understanding the different purposes of real estate contracts will be very beneficial to you in the long run. Here is our guide to Lynchburg VA real estate contracts.
Purchase Agreements
A purchase agreement is what may be considered the most common style of Lynchburg VA real estate contracts. This is a fairly simple and straightforward sale between the seller and buyer and contains all the elements of a legally binding contract. If you are working with an agent, it will likely be a Virginia or Realtor association contract. If the sale is directly between the seller and the buyer, then the general purchase agreement is typically used. As for properties other than single-family, you may need to make use of a property-specific form.
Contract Assignments
While it may sound complicated, Lynchburg VA real estate contracts are often assigned to another buyer. In this way, real estate investors facilitate sales as a wholesaler between the seller and the end buyer. In other words, the original buyer has sold the rights to buy the house to another buyer. The end buyer pays an assignment fee, which is typically very small, and then proceeds with the purchase of the home from the seller.
“Subject To”
Selling property as “subject to” an existing loan is yet another way that Lynchburg VA contracts may be written. This clause in a real estate contract allows a distressed seller, who may otherwise lose the property, to assign payments and right of residency to the buyer. Ownership of the property transfers to the buyer, but the seller, is still responsible for the original mortgage with the lender. The buyer is under no obligation to the lender, so should the worst happen and they fail to make the payments, it is possible for the property to end up in foreclosure.
Lease Agreements
If your plans involve becoming a landlord, your Lynchburg VA real estate contracts will involve lease agreements. This guarantees the tenant the use of the property, for a specified period, while at the same time providing you with a monthly income. These contracts are carefully laid out to avoid any confusion or misunderstanding of any issues that may arise and what exactly is expected from each party involved. You’ll want to be certain that you’re meeting all local, state, and federal guidelines when creating a lease agreement.
Power of Attorney
While not commonly thought of, the power of attorney can be extremely useful in real estate contracts. Through the use of the power of attorney, you can convey your rights to conduct business to someone who is entrusted with your finances, an attorney, or an agent. They come into play when the owner is either not available to conduct business or is incapacitated, has had an accident, or is in seriously declining health and unable to conduct business any longer.
Rent to Own
The rent to own strategy is advantageous real estate contracts for Lynchburg investors. As the seller, you collect monthly rent along with additional monies. The buyer has the ability to try the house out for a specified time period. There are two types of these contracts, the option to buy or the agreement to buy. The agreement to buy tends to be much more desirable to sellers, in general, given that the home must be purchased at the end of the agreement period by the renter. This strategy allows buyers time to build savings towards a deposit on a conventional loan and find financing. Should your buyers have chosen the option contract, they are not obligated as in the agreement to buy. Should they be unable to qualify for a mortgage loan the renter can simply walk away at the end of the agreement.
Do not let intimidating contracts stop you from success in your investment business. The professionals at Linken Investments LLC. are the best guide you could have to walk you through real estate contracts, we make your Lynchburg VA real estate investment business easy. At Linken Investments LLC., we take the time to listen to your dreams and help you make plans, and update plans as your life and goals change over time. When a great deal can be yours, you will know you’re using the contract that best suits your long term investment goals. Why not get started now? Just send us a message or call Linken Investments LLC. at 434-390-2906 today!
Linken Investments, Lynchburg’s Trusted Home Buyer and Seller
Linken Investments LLC. is a local real estate solutions company based out of Lynchburg, VA. We are Lynchburg’s Trusted Cash Home Buyers. We have been buying houses for cash in the Lynchburg area since 2005. We are also Licensed Realtors in the state of Virginia. Since we are a real estate investment company as well as a licensed and reputable real estate agent, we have multiple ways we can work with you to sell your Lynchburg area home on your schedule and for the highest price. We provide you a way to explore all your options, letting you choose whether you want to maximize the price of your sale by listing on the MLS or whether selling fast and simply is more important to you.
Our years of experience are one reason clients trust Linken Investments to complete the sale of their Lynchburg area property quickly with honesty and integrity. We’re a family-owned business and focus on helping homeowners like you find solutions to your problem whether you’re going through a foreclosure, selling an inherited property, or just need to sell your house fast for any reason. Linken Investments offers you the chance to sell your home in a simple, stress-free, cash transaction, or you can list the house with us. We’ll sell your Lynchburg area house at the highest possible price with our wide buyer network and the best marketing in Virginia.
Linken Investments can buy your home exactly as it is, no repairs or cleaning needed, and we pay all cash and close fast, in as little as 7 days or when it works best for you. Think of all the time and money that can save you. There’s no easier or quicker way to sell your Lynchburg house fast and get on with the next chapter in your life.
It won’t cost you any money and only about an hour of your time to find out how much cash we’ll pay you for your house. And you’ll be under no obligation to accept our offer, so you have nothing to lose but a house that’s standing between you and the life you want to enjoy.
Give us a call or text anytime 434-390-2906 or fill out the short form here today!