How We Work
Schwaps LLC is a Real Estate Investment company. We acquire our properties via various means. Those means include; short-sale, foreclosure auction, tax foreclosure, REO, etc. Some of our properties we acquire are held in our rental-portfolio, while many properties are promptly resold, or offered via our rent-to-own program.
The two programs that make up the bulk of our business is our short-sale (foreclosure-prevention) program and our rent-to-own program.
Short Sale:
A Short-Sale is a term used for when a lender accepts less for their note than what’s owed, as a debt satisfaction. This is utilized commonly in todays real estate market for homeowners that are upside-down in their mortgages and delinquent. Instead of foreclosure many banks will accept a reduced dollar amount for their property, thus approve a “short-sale”.
We negotiate and purchase “short-sale” properties. Short-sales help the homeowner as they are able to save their credit score, allowing them to buy a house as soon as after a 2 year period versus a standard 7 years, if they resort to foreclosure.
We work hand-in-hand with Realtors across the country with short-sale listings that meet our criteria
Our Short-Sale process break-down:
1. Review potential property
2. Submit Short-Sale Package to Bank/Lienholder
3. Negotiate the Short-Sale directly with Bank/Lienholder
4. Gain Short-Sale approval
5. Purchase Property with Cash
6. Realtor receives double-commission (applicable to dual-agency)
7. We resell property with same Realtor (if applicable)
Schwaps doesn’t charge the homeowner or Realtor any fees. The company’s financial gain is obtained upon the purchase of the property via short-sale.
Rent-To-Own:
A Rent-To-Own property or also known as a Lease with Option to Purchase property is mostly used when a prospective homeowner has the wallet to afford a house but cannot qualify for a mortgage loan (the buy-side). It is also used when a current homeowner has a house that they need to sell, but has very little equity, thus they cannot price it to sell at a discount and be competitive with other homes listed for sale (the sell-side).
A Rent-To-Own arrangement can work out to be a win-win solution for both a tenant-buyer and a seller. The tenant-buyer will pay rent on a monthly basis just as a regular lease, however at the end of the lease, they would have the right (not the obligation) to exercise their option to purchase the property. The deferred purchase of the property will allow the tenant-buyer to repair their credit and thus be more likely to qualify for a mortgage and buy.
We have a roster of pre-qualified tenant-buyers actively seeking a property ideal for them.
Our Rent-To-Own process break-down:
1. Homeowner has property that’s been listed for over 180 days
2. Potential property is reviewed for our program
3. Homeowner enters into lease-agreement directly with Schwaps
4. Schwaps notifies internal pool of pre-qualified tenant-buyers
5. Interested tenant-buyers tour property
6. Schwaps attributes lease-agreement directly to tenant-buyer
Schwaps collects a fee directly from the tenant-buyer, this service is provided at no fee to the homeowner or Realtor.
