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We had a rep from Home Partners of America in our office yesterday to brief us on the program. As Cindy said seems like it is designed for those who may have a problem qualifying for a mortgage and is only available in qualified neighborhoods. Am looking forward to trying it out if the opportunity presents itself.
Los Angeles, CA
I am a Realtor with Coldwell Banker Residential Brokerage in the Dallas/Fort Worth area. I personally have done 20 contracts with Home Partners of America and can tell everyone here that they are the real deal.
Nothing but integrity and straight-forward in their business dealings. For Clients that can not be approved by Coldwell Banker Home Loans I take them STRAIGHT to Home Partners of America. Nothing but positive results. www.MetroDallasRealtor.com
Los Angeles, CA
Gary Meek this seems to be a great opportunity for sure (and learned something from some answers, too.) Great question.
Absolutely. I know several investors doing this in my area. It takes an immediate burden off the seller but I have witnessed many of those tenants not paying and abandoning the property. If the investor isn't finanacially sound, he will be in hot water and the seller suffers. I worked for an REO company that had several houses go to foreclosure against the seller because of this.
Los Angeles, CA
I have had a few offers that sounded something like this, I saw no advantage in dealing with them.
I have not
Just wondering if there are any updates on this thread. Have any of these renters moved forward with a purchase? I've done two deals with Home Partners this year and both went smoothly and were right for those clients at the time.
I knew I could come here and get some answers.
Debbie Reynolds, that was my concern. The guy said their margins are like 5% which is not a lot and so my concern is they could not make it in a few years and I have placed clients under their "lease to purchase" plan.
Is there anyone who have had clients SUCCESSFULLY buy after lease terms were up???
ANY MORE UPDATES REGARDING CONS?
Gary Meek did this ever work out for you? If so, do you mind sharing the details?
I am a real estate broker in Dallas, Texas and my agents and I have had considerable experience with both Home Partners and HomeLPC . Each of the two programs are really targeting a different demographic. While the absence of an option payment in the Home Partners (originally Hyperion) may be attractive to many potential rent to own clients, the costs and the 5% per year increase in the option price only makes sense if you expect double digital home appreciation annually. Thus, it seems that Home Partners works for the group that his little or no savings who is willing to let the future market determine the viability of the option, if any.The HomeLPC model is clearly the better option for the family that has some savings and is committed to purchasing the home that it chooses to be purchased by HomeLPC. The 1st year rents are comparable but HomeLPC keeps the rent fixed for the 3 years while the Home Parter rent increases annually. As you correctly stated, the HomeLPC program does require a 5% option payment which is applied to the purchase price at the time the option is exercised and provides for 50/50 split of appreciation. That is really quite appealing to the family that is committed to becoming homeowners. HomeLPC will also accept into the program condominiums and new construction.I have also learned that HomeLPC has just started doing business in the states of Florida and Washington and is soon targeting further expansion. My contacts there are Nick Bratsafolis (email@example.com) and Pam Mills (firstname.lastname@example.org).-JP
They did a presentation in our office too and a couple of our agents have deals going with them, I'm working on a couple potential too. I hope it works out. It seems like a great way to improve the number of deals you do.
There is a company called Home Partners of America (www.homepartners.com) that I heard about at a RE/MAX Top 500 convention last year. They use specific criteria to qualify neighborhoods and homes. You as the buyer's agent bring the client and the home to their attention. If all the details work out, the company buys the home - you get paid as the company's buyer's agent, they become landlord and your client leases the home from them. There is a preset rent and a preset cost of purchase at the end of the lease term, if they choose to purchase. If the renters want to continue leasing they can. At the end of year 2, they again can purchase for a preset price (higher than at end of year 1)...and so on. The program is supposed to be geared toward buyers who are 1st timers, have difficulty obtaining a mortgage, those concerned about market, or those relocating. It can also open up the opportunity for someone to rent a house that is only listed for sale. I have not used the program; so I have no personal review.
Never heard of it. I am sure Detroit home owners would love a program like that
It's not done very much in my area. Florida lease agreements discourage this practice.
It is a great way to tie up a property if you can ge the owner to agree to it.