I’m a rookie – a first year realtor who’s been having a bit of trouble finding my niche in the industry.  One of my co-workers, an agent who’s been around for a while suggested that I try to find an area I liked, then specialize in it.  He said to learn as much as I could on that area by focusing on it and then I would be more valuable to customers who were looking to buy or sell within that particular area.  Instead of picking a neighborhood or region to make my own, I chose to become an expert in the area of the foreclosure.  I found several classes available on the subject and am starting with a web based class detailing the business of investing in foreclosures.  The class only takes ninety minutes and has gotten rave reviews, so even if I only pick up a few solid tips it will be well worth it.  If this goes well I should be the only foreclosure expert in the area, and with all the property investing going on these days.  My career could get quite a boost from this, and since the education is supposed to benefit my performance on the job, my work will be footing the bill.

If you are currently contemplating a move and wish to sell property, rent back the same property for a period of time, and finally be rid of the whole thing altogether, you might be motivated by a number of different reasons, but urgency is at the root of each and every some such transaction. This, of course, is the reason whey investors are beginning to circle those who are flirting with the “sell and rent back” option, and you will be wise to consider this kind of financial move from every possible angle. 

For example, keep in mind that the number one thing to avoid is to sell property, rent back a nightmare, and end up holding the debts while your property is gone. Here are tips on how to avoid such a fiscally disastrous step:

* If your home is on the edge of being foreclosed on, do whatever is possible to avoid it! This might mean having to take advantage of the investors who will buy your home and then rent it back to you, and even if everything inside you chafes against making this kind of deal, remember that you will lose one way or the other if you have the mark of a foreclosure on your credit record!

*  Before getting ready to sell real property, negotiate with your lender to get the best possible jumping off point. Explain that you will have a cash seller coming in and do whatever is humanly possible to have fees reduced, late charges eliminated, and even negative credit notations on your credit profile erased (yes, creditors do have that power and when properly motivated, they will use it). If you fail to negotiate your mortgage down to a bare bottom line amount, you will spend money paying back funds that technically you did not have to pay!

*  Understand that when you sell property, rent back that same property, and do so with a private investor, it will be a cash sale and you will be selling your home at a greatly reduced price. Crunch the numbers ahead of time and make sure that this is worth your while! Will saving time at the onset have any fiscal advantage for you, or are you just too tired or lazy or pessimistic about selling your home that you do not even want to try on the open market?

*  Consult with specialists. Speak with realtors and find out if there is any way to find a cash buyer for your house without having to take a bath on the bottom line.

*  If you do your homework ahead of time, when you sell your home it is much less likely that you rent back a nightmare that only gets worse when you realize the plethora of mistakes you might have made during the transaction itself!

*  Last but not least, find out if you can afford the rent. Crunch the numbers and find out how money – if any – you still owe the original lender, and how much the monthly rental payment will be. If you cannot afford the payment, you will only continue on in your fiscal demise and it is vital that you explore other options while you still have your house as a bargaining chip.