|
Last Updated: May 14th, 2012 - 22:24:01 |
Why are real estate investors having so much success offering "rent to own" homes?
Lease-options offer home ownership opportunities to folks with little cash and not so hot credit.
Oh boy, there are plenty of those around.
Both parties in a lease-option deal are counting on the buyer being able to qualify for a home loan before the option expires.
The investor wants to collect his profit when the optionee buys. The optionee wants to own the home.
During the lease period the renter/optionee must be working to improve their credit score to the point where they can qualify for a loan and buy the home.
More below...
Even though there is plenty of sub prime loan money floating around at the present time... the lease-option method of acquiring a home seems to appeal to many.
In our own investing program.... Before we accept someone for a lease-option deal we have them interviewed by our friendly loan broker. He gives us thumbs up or thumbs down on whether our prospective buyers has a chance to qualify for a mortgage loan loan during the next 12 to 24 months.
It would be unethical and dishonest to enter into a lease option deal with a couple whose credit could never be cured even with a miracle drug.
We are not aware that it has happened, but we fully expect to see a lawsuit filed against some careless investor who does a lease option deal with someone whose credit is beyond redemption.
That renter/optionee has been lead to believe he can buy the home and when he finds out he can't we are sure some hungry lawyer will rush to their rescue.
We can visit that investor in jail and bring him a copy of a "no money down" book with a file hidden inside.
About The Author - Mark Walters has written
"The Last Great Real Estate Secret".
Do you own real estate articles or stories and want to share with other investors?
You have chance to win
$100 Amazon Gift Certificates. We will give
away 3 prizes for top authors each month!
Email your articles or stories to:
articles@buyincomeproperties.com
© Copyright 2001 - 2010 by
BuyIncomeProperties.com
Visit
Real Estate Forums
for every real estate investing topics!
Enter Here
Top of Page
