| Real Estate Investors |
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| Linda Adams - The Clean Credit Queen™ |
| Helping Real Estate Investors, Small Business Owners, and Regular Consumers Find Solutions to Credit Challenges |
- Do Your Rent to Own/Lease Option Tenants Qualify for a Mortgage?
- During this down phase of the real estate cycle (yes, prices will increase…someday) the smart investor is using
the Lease Option strategy to find buyers. It is not as difficult for a buyer to make a commitment to a
house when the market is rising, but for buyers in this bear market, the fear of buying a home that will only
depreciate in value is a scary thing. It is up to you, the seller, to make the Lease Option attractive so that you get more potential buyers.
Have your potential buyers think of the lease option period as a ‘long engagement’ rather than the ‘elopement ‘of buying a house out
right. Of course you are going to investigate them thoroughly for past and present credit issues. Buyers are usually more willing to
balance the chance to improve their credit and ‘reserve’ their new found home with a down payment and slightly higher monthly payment.
If your concern is that the potential buyer will not have a good enough credit score to qualify for a mortgage at the end of the lease option
period. Generally, giving someone a two-three year option on your property should give them enough time to get their finances in order
and settle in so that they feel the house is already theirs.
If you are concerned that the potential buyer will not want to follow through on purchasing the house at the end of the lease option period,
you need to make sure that the upfront option money is high enough that they will not want to lose that amount, but also low enough that
they can afford it. While this used to be 5% of the purchase price of the house, this number has been falling as financial difficulties hit
more and more people.
I address both of these problems in my Personal Credit Builder System with Success Coaching so if your lease option tenant needs
encouragement and support and you do not have the time to help them please consider putting an expert credit educator on your support
team.
- Summary – During this down phase of the real estate cycle the smart investor is using the Lease Option strategy to find buyers. The fear
of buying a home that will only depreciate in value is a scary thing for b It is up to you, the seller, to make the Lease Option attractive so
that you get more potential buyers.
Credit Article by Linda Adams - The Clean Credit Queen
Good Day and Good Credit
The Clean Credit Queen has a number of products and services that may be useful if you're trying to enhance and improve the credit
situation or your tenants. As you know, credit education is a key that will help unlock the doors that might be blocking your tenants access
to better credit and the realization of the things you want, and they want.
Click Here to Get More Information About the Products and Services Offered By Linda Adams - The Clean Credit Queen
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Linda Adams, The Clean Credit Queen is not a registered investment advisor and the information provided on this website should be considered educational in nature, but it is not a substitute for legal or professional financial advice. If you believe you need the help of a Certified Financial Planner or other investment counselor, please seek a qualified professional. |
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