Financial hardship is something that no one is immune to. Especially in these hard economic times, it has become harder than ever to break out of the mould and live a truly financially free life. However, when times get rough, it is crucial that you don’t lose hope or give up. Giving up will not solve your problems or make them disappear. When you are having financial problems, you should be actively searching for ways to improve your circumstances. One strategy you can use immediately to get some extra cash flow is to ‘Sell and Rent Back’ your home.
‘Sell and Rent Back’ is exactly what it sounds like. You sell your home, only to rent it back at a price that is usually more manageable than your mortgage. ‘Sell and Rent Back’ companies buy the house below current market value. They typically pay around 60% to 70% of what the house is worth, although there are occasions when a house may sell for even less. A few S&RB companies do offer to pay the full house value at a later date. Once you’ve sold the house. You are still allowed to live in the house. However, your status changes from home owner to renter.
There are numerous benefits if you decided to sell and rent back. Off course the main one is that you can raise up a large amount of capital which you can use to remove or loosen some of the pressure of debts and bills. It is one of the quickest legal ways to raise a significant amount of cash. Another benefit is that you won’t have to move and restart your life in a different home which is especially good if you already have a family. You can continue to live in your house as if you were still the home owner and won’t have to uproot yourself and your family. ‘Sell and Rent Back’ companies also practice great discretion. No one has to know that your status changed from home owner to renter.
‘Sell and Rent Back’ is a great opportunity that can help you change your life around, but only if it is done right. And that starts off with you picking a good company to work with. When looking for a ‘Sell and Rent Back’ company, you should steer away from any new start ups or companies that don’t really have a lot of history or background. You won’t be able to get a clear picture of the intentions of the companies. Instead, you should move towards companies that have a lot of positive reviews and a vibrant background. Selling and renting back isn’t something you should just trust to any company that pops. Be very selective in who you decide to work with.
Finding a reputable company is only half the battle. The next step will be to get to know the insides and out of the company that you are going to be working with. Be sure to read all of their policies and procedures. Before you sign any documents, make sure that you look over it a couple of times. If you need clarification on a certain point, don’t hesitate to ask. These contracts are going to legally bind you a company and out of the best interest of you and your family be sure that they are favorable to what you are trying to accomplish.