What this means for an INVESTOR! We have a group of investors that purchase properties that they hold for a one year plus 1 day. According to IRS guidlines with timeframe allows investors to be taxed on a Long Term Capital Gain. If held for less that one year they would be taxed on Short Term Capital Gain. This could mean a difference of 10-15% savings in taxes to be paid during the year the property is sold.
What this means for a prospective BUYER! The purchasers who want to improve their credit score to get the best interest rate and who want home ownership are the primary target for this market. It allows the purchasers to lease for a one year period, have pride of ownership and close when their credit scores are improved to get the best lender program to fit their needs.
What this means for the REALTOR! Real Estate agents who have properties that have been on the market, need cosmetic upgrades (paint, carpet, new light fixtures, plantation blinds). Maybe their Sellers have an urgency to sell. This is the property that our investors are interested in purchasing as an investment.