Posted by: Matt B ®
07/20/2005, 17:02:02
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Well, if you do lease options as I do and teach them, this is NOT how to go about it. I do sign up 2 agreements with my tenant/buyer. A rental agreement and a PURCHASE agreement. The lease is for 1 year and the purchase agreement allows the tenant/buyer to buy at any point during that year. Also, I do not put someone in the house to "ponder" whether they want to buy or not. I only deal with BUYERS who want to buy now, but cannot get their financing because of some minor credit issue. I work with my tenant/buyers to help them get financed as quickly as possible. I keep good records of their payments, and have them use MY mortgage broker to get financing as quickly as possible. IF they are unable to buy at the end of the year and just need a little additional time to improve their credit a bit more, I will write up a new lease and new purchase agreement on the SAME terms in order to help them get their mortgage. If they have built equity into the house, this makes it even easier to get financed. However, if they have paid late or are not maintaining the property, they must leave. I tell everyone this. If they have been good tenants, I will renew and continue to help them get a mortgage. Matt Bowman
Related link: www.REItoolbox.com
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