Ken's Naperville Real Estate Blog : HOUSING MARKET GOT YOU DOWN? DON'T IGNORE RENTALS...

HOUSING MARKET GOT YOU DOWN? DON'T IGNORE RENTALS...

Almost two months have passed since the home buyer tax credit has ended.  The real estate market today is like a boat without a rudder....

Many would-be buyers can't afford to buy.  Many would-be sellers can't afford to sell...

So where is the growth sector in the real estate business in this economy?

Rentals.

That is right, rentals...

I was originally hesitant.  I wasn't sure the work would be worth the smaller paychecks that come from closing rentals...

I was wrong.

Just one month ago I wrote a post titled, "Every check counts.  Closing my first rental."

Since that time, I have been contacted by several individuals who aren't interested in selling, but need tenants for their vacant homes...

This week I took two new rental listings:  

   249 N. Gregory, Aurora               6006 E. Lake Drive, Lisle
                  249 N. Gregory, Aurora                                         6006 East Lake Drive, Lisle

 

I received 5 calls on those listings yesterday...

Calls from would be tenants.  Calls from people who were not working with another agent.  Calls from people who want to do business... 

Prospects.

I have two appointments today, and one scheduled for Monday, and I just put these listings on the market a few days ago.

Incredible indeed.

Two reasons for this:

  1. Sellers who choose to rent rather than sell are motivated. 
    Vacant home can be expensive.  A tenant can ease the financial burden.
    The homes are priced to move.

  2. Renters are motivated. 
    They need a place to live.  They aren't looking at homes "just for fun".
    They need a home and need one quickly.  No looking for months trying to find the dream home.

 

Working with rentals has been refreshing.  These customers want to do business.  They are committed to making a deal happen...

It is about cash flow, not winning or losing.  There is no ego when it comes to renting.  No worrying about selling at a profit or taking a loss...

How much business will I do this year in rentals?  I have no idea, however...

It is good being busy.

Ken

Are you looking to rent a home in Naperville?  Call me anytime at 630-697-0536 or go to my website at www.KensFeaturedHomes.com.

 

Comment balloon 6 commentsKen Tracy • June 18 2010 12:55PM

Comments

Good for you Ken. Now the next step is to take those renters and spin them to a friendly mortgage professional who can start working with them now to put a game plan together to buy a home. Many renters would like to buy but just cannot due to credit, income, or down payment. I have clients that decided to rent for one of these reasons and a year later were ready to buy. Some of them needed help with credit issues or just putting together a plan to save enough for a down payment one year down the road.

Posted by Roy Paeth, Just a regular guy helping real people! (Keller Williams Fox Valley Realty) over 7 years ago

Hi Roy.  Thanks for reading.

Just hoping to close a few more deals!:)

Thanks again,

Ken

Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) over 7 years ago

I think we all need to look at different ways to make an income in these times.

Posted by Damon Gettier, Broker/Owner ABRM, GRI, CDPE (Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert) over 7 years ago

Ken:  I applaud your open-mindedness and willingness to consider different sources of income.  I think you're very wise ... and as it was pointed out previously, renters many times become buyers in the future and can be a very good source of referrals. You're serving many needs by taking this path ... all good.

Gene

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) over 7 years ago

Ken, good job for finding a niche for today. As Gene says, today's renters often become tomorrow's buyers.

Posted by Lottie Kendall, Serving San Mateo County and San Francisco (Today | Sotheby's International Realty) over 7 years ago

Hi Lottie, Gene and Damon.  Thanks so much for reading.

I didn't really choose rentals.  They chose me...

People started calling.  What was I to do?

:)

Thanks again,

Ken

Posted by Ken Tracy, Helping clients buy and sell since 2005 (Keller Williams Realty Infinity) over 7 years ago

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