Posted by Dee-Texas on September 13, 2002 at 07:25:04:
I deal in 3/1 or 3/2 blue collar neighborhoods. Most of the people that come to me have damaged credit that a broker wouldn’t take. I would have to hold my houses a long time to find a prequalified t/ber. This way I have many, many applicates. Sometimes I win sometimes I loose but I hedge my bet with cash options.
It’s better than renting them and that’s what I would do if I couldn’t L/O them.
Just the way our economy is in this small town.
Best Success,
Dee-Texas
Is anyone successful at getting their L/O buyers financed quickly and efficiently. It seems to be getting more difficult to find decent buyers for my rehabs. In the past, I have L/O some of my houses out. There is definitely no shortage of potential L/O buyers for rehabs. The problem comes in when they are unable to cash me out. My goal is to get the buyers financed within 6 months to a year.
Can anyone suggest some tips? Should I be pre-screening people more carefully, insisting that they work diligently on getting credit cleaned up or else the price will go up in a year? I’m not sure how to make it happen quicker.
Re: Getting L/O buyers financed…fast - Posted by Craig-SoMD
Posted by Craig-SoMD on September 12, 2002 at 13:38:01:
Buy better quality houses for rehab, which will draw better quality buyers for L/O and purchase. The person that will rent/buy a $600/mo house is quite a bit different than the person that will rent/buy a $1200/mo or more house.
Re: Getting L/O buyers financed…fast - Posted by Dee-Texas
Posted by Dee-Texas on September 12, 2002 at 07:16:11:
I try to prescreen my T/Bers carefully BUT they still flake on you. In my area, people are wanting nice houses to RENT, I have had two in the last year, pay the option money and stay for a year or even 4 months in one case and leave.
It’s the way with L/O’s, yes they are easy to fill if you are within the range of rent and low option for the house and area …BUT…when people have rotten credit scores it’s hard for them to change unless they REALLY want to and frankly some of them have no intention of cleaning up their scores. They think the house fairy will magically fix everything OR you will continue to carrying them and they won’t have to go through the confusing and hard part of getting a new loan.
If they pay well and keep the property well, I will always give them extensions with them paying another option fee and a little higher rent. In this area it’s hard to find good renters or T/Bers that won’t trash your house so I really want to keep the good ones.
Best Success,
Dee-Texas
PS…I do have in my option if I extend the option it will cost them $$ for another year and the rent will be increased $25.00 per month for another year extension. You can always help them out if they are trying but TRULY don’t have enough money to stay for another option.
Re: Getting L/O buyers financed…fast - Posted by Bruce Lawson
Posted by Bruce Lawson on September 11, 2002 at 20:53:15:
Hi Mike,
You can always add into the lease any contingencies, and one could be enroll into a credit repair program or make personal attempts on repairing their own credit. A huge increase in credit scores can be achieved in one year.
For more information on credit repair contact me and I will be happy to discuss it with you.
Re: Getting L/O buyers financed…fast - Posted by Bryan-CA
Posted by Bryan-CA on September 12, 2002 at 12:48:06:
I know that Robert Shemin in Secrets of a Millionaire Landlord recommends getting t/b’s who are prequalified for a mortgage. That way you don’t get that sort of situation. Or you could place the ad in Homes For Sale in the paper instead of under For Rent.