Matt B-thanks so much for your reply. In reading your posts, you seem to have a lot of great tools you have put together such as the pro/con sheets of lo’s & this credit info. Are these things going to be included in your course & when will we be able to purchase it? Thanks again, Leslie(Dallas)
I was curious on your lease/options what percentage of your buyer/tenants get qualified for a loan at the end of the option period? Do you normally extend the option? Thanks so much for all your input on this board. Look forward to hearing from you. Leslie(Dallas)
The answer is it depends which time around they are trying to exercise. From the first time, less than 50% will qualify, 2nd or 3rd time everybody qualifies.
As you could conclude from the above, I do extend, provided they paid on time.
When I started tracking this particular statistic, I noticed that about 40% of my tenant/buyers were exercising their option. That didn’t seem too great to me, so I started working a little closer with my tenant/buyers to help them get financed.
I worked with my tenant/buyers to help get their credit cleaned up. I wrote up a “Credit Repair Pamphlet” based on a couple of other credit repair kits that I had seen and gave it to every new tenant/buyer of mine. I worked more closely with my mortgage broker to see who was most qualified to buy the house. That percentage has been rising for me now.
I have had a lease option go as long as 18 months before. I will extend the lease option if the tenant/buyer has been paying on time, has kept their credit clean, and has taken care of the property.