RENT TO OWN!
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.
During the lease period the renter must be working to improve their credit score to the point where they can qualify for a loan.
Even though there is plenty of subprime 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 a thumbs up and thumbs down on whether our prospective buyers have a
chance to get a loan during the next 12 to 24 months.
It would be unetical 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 lawsuite filed against some investor who does a lease option deal with someone whose credit is beyond repair.
That lessee has been lead to believe they can buy the home and when they find out they 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 Robert Allen book with a file hidden inside.
To do lease-options the profitable way go to... http://www.buyincomeproperties.com/leaseoption.htm