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Article source: http://www.kabish.com/. Used with authors permission.
Why are real estate investors having so much successoffering rent to own homes?
Lease-options offer home ownership opportunitiesto 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 thebuyer being able to qualify for a home loan before theoption expires.
The investor wants to collect his profit when theoptionee buys. The optionee wants to own the home.
During the lease period the renter/optionee must beworking to improve their credit score to the pointwhere they can qualify for a loan and buy the home.
Even though there is plenty of subprime loan moneyfloating around at the present time... the lease-optionmethod of acquiring a home seems to appeal to many.
In our own investing program.... Before we acceptsomeone for a lease-option deal we have them interviewedby our friendly loan broker. He gives us thumbs upor thumbs down on whether our prospective buyers has achance to qualify for a mortgage loan loan during thenext 12 to 24 months.
It would be unetical and dishonest to enter into alease option deal with a couple whose credit could neverbe cured even with a miracle drug.
We are not aware that it has happened, but we fullyexpect to see a lawsuit filed against some careless investorwho does a lease option deal with someone whose creditis beyond redemption.
That renter/optionee has been lead to believe he can buy thehome and when he finds out he cant we are sure somehungry lawyer will rush to their rescue.
We can visit that investor in jail and bring him a copyof a no money down book with a file hidden inside. About The Author -Mark Walters is a real estate investor and author. Hispublished works can be found at his web site...http://www.CashFlowInstitute.com
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