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I was curious if anyone has utilized this program. Here is the website that discusses it: http://www.marketplacehomes.com/ Has anyone completed the full 6 years they offer in guaranteed rent? How is the commission calcutated that they recieve from your new construction builder? Any insight into this would be great. We live in NW suburbs of Chicago, IL to give you my location, but they are doing this in several states across the country, so anyone who has gone thru please post your experience, good/bad reviews. Thanks.
My sister in law and brother are using the program right now in Indianapolis. They loved it so I called to see if I would be able to use it as well. Marketplace approved me but unfortunately I wasn't able to qualify for the 2nd mortgage. I'm going to try again in another 8 months though. I can't speak for everything my family has to say about the program but I'm sure she wouldn't mind answering a few questions for ya. I'll see if I can get one of them on here. Also, 2b, I do know all of their property management is in house so saying that it is a marketing ploy is incorrect.
We have 2 friends that have gone thru the program now in the past 2 months. So they are at the early stages. One said MH got $15k in commission and the other said $20k. My guess is it was a 6% commission. What I have heard is if you go thru this program the new builder will not negotiate. I would only be intersted in negotiating on upgrades. For example, if we did the gourmet kitchen with maple cabinets and hardwood floors, would they throw in the SS appliances. That kind of negotiation. I understand they want to keep the price up so appraisals stay high. The only issue I have with this is if you go with their "in-house" lender they will inflate the appraisal. For example there is a 3100sf home in chicago suburb, with SS appliances, upgraded kitchen with granite counters, jacuzzi tube, etc.... as a short sale in the subdivsion we are looking at for $245k right now. The problem is if you do this same home now with those upgrades you are looking at $280k, we priced it out. How is that appraisal suppose to hold up? What we dont want is to be under water on 2 properties. I would be interested to hear about your family's experience for sure. They can send me a private message if they like.
I am currently in an agreement with MPH and have to say, buyer beware.....
they signed a tenant to a 3yr lease which handcuffs us to not being able to sell it for at least 3 years, or less if the tenant decides to buy it before the end of their lease. we were not consulted about a sub-tenant lease otherwise we would have argued the 3 yr lease term. after the 1st year, their "renewal" agreement with the owner changes terms...even though "renewal" infers the "same" terms. the amount of rent they pay you after the 1st year is $100 less than the tennant is paying. therefore the rent payment may have covered the mortgage in year 1, but in year 2 you could be $200 short of covering the mortgage and have to absorb that yourself. It's shady to say the least but it did get us out from under our other home and $200 a month is probably worth keeping MPH on the hook for any damages when the tennant stops paying or moves out. The guaranteed payment from MPH regardless of anyone living in the home helps us get closer to being able to sell it opposed to giving it back to the bank in foreclosure.
Disclaimer: I know absolutely nothing about the company offering this deal, so I am not talking about them specifically.
I would wait to see how happy the buyers are after the 6 years are up. If all the buyers were still deliriously happy, then I would consider doing one.
This guaranteed rent deal is common with condos in Europe. The condos are all over-priced to begin with. Sometimes it is difficult to enforce the contract. The seller goes out of business and there is no one to go after.
In the USA, I would worry that they would lease the house to a Section 8 tenant. That would be guaranteed rent but no guarantees about how much damage. Certainly, they would be billing you to repair damage and that can get mighty expensive when someone else is making money off of it.
So, just a little caution about all the fine details before you commit.
My husband and I bought our first home in 2006. Enough said, right? Like everyone else who did that, we quickly found ourselves owing more on the house than what we could ever hope to sell it for in the depressed market. We tried for over a year to think of any possible way we could get out of that house and into a house that fit our growing family better, was closer to my husband's work and in a better school district. We felt absolutely stuck. Then, a friend told me about Marketplace Homes. We found the perfect house to move to and they guaranteed us that we would have the rental income from our old house that we needed. It is such a relief to finally be in the right house for us. I've had nothing but a great experience with Marketplace Homes and will continue to recommend them as I've already done several times.
My husband and I bought our first home in 2006. Enough said, right? Like everyone else who did that, we quickly found ourselves owing more on the house than what we could ever hope to sell it for in the depressed market.
Not everyone that bought is 2006 is underwater. Some areas are back up to that price level. Hopefully the new house is in a location that isn't as undesirable as the old one!
Does anyone who signed on with marketplace homes a year or more ago have any new complaints? reviews? praises? my husband and I are considering doing this. We don't owe anything on our current home so not sure if the rental option is the best for us but hoping it would cover our new mortgage completely. I just don't want to take a huge risk. Any input is appreciated from someone who has lived it! Thank you so much!
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