Lease Purchase

Onward and upward with this new blog post about one of the best ways to purchase real estate. Especially if you cannot qualify for a traditional bank loan. Ever since the real estate bubble crash and the banking crash of 2008 it has been very difficult to qualify for a bank loan for approximately 80% of the population. Where most people could qualify with all of the easy sub prime mortgages prior to 2008, all of these would be home buyers are on the sidelines now and are forced to rent the house or apartment that the live in. The banking system had tremendous regulations applied to the mortgage and lending fields, so it has drastically lowered the amount of mortgages originated since the crash.

A great way for these sub prime would be home buyers to get back on their feet is through a lease purchase transaction. Sometimes called a Rent to Own, Lease with option to purchase, these arrangements can set up the lease to purchase buyer on a great trajectory to home ownership. The landlord that owns the property can set up a auto pay through a few providers such as Clearnow, and Rent trac who will report the monthly lease payment, as long as it is paid on time, to the credit bureaus. This in turn, really helps to establish a credit history for these hopeful buyers and puts them on the path to being able to get financing down the road. My attorney over at Gwinnett Bankruptcy Attorney always sets this step up for us since they do real estate closings also. The credit reporting service is free of charge, and we provide this service to all of our tenant/buyers for the homes that we sell on lease purchase. Besides, it is easier for us to collect the payments each month with this arrangement since we don’t have to wait on the check in the mail game.

After a good 12 or 24 months of paying on time and the payments being reported to the credit bureaus, the tenant’s credit will improve slowly but surely based on this service. Otherwise the tenant gets no credit reporting for normal rent, like in most cases. Also, it is just good business to help these tenants get on their feet and repair America’s credit back so that people can realize the dream of home ownership. If you are not using this service, I encourage you to check it out. It is a win/win for both the tenant and the landlord for these to be set up.

Now, it is up to the tenant to pay on time and do what they are supposed to do in order to qualify for financing to purchase the home under the lease/purchase arrangement. We always do what we say we will do under these relationships, but sometimes the tenant goes out and buys too many cars or runs up credit card debt. That, we cannot control and have to give them tough love.

All in all, the lease with option to purchase is a terrific tool in the real estate investors tool belt. It helps to sell otherwise slow selling homes on the market, and helps renters become buyers as long as everyone does the responsible thing. Also, the tenant’s down payment goes towards the purchase price so, the deposit is not lost in the end if the tenant ends up buying the home.

Creative Financing

Depending on a home seller’s situation or need to sell, there are some great ways to buy property creatively with real estate investing. First off, you can buy properties that are already “for sale” on the MLS with an agent and make offers that way. But, if you want to pick up properties without the hassles of real estate agents, and make creative deals happen, then you need to market to sellers that need or want to sell their property quickly. I know a guy at roofing Roswell, GA that has this down pat.

There are certain lists that you can purchase in order to market to direct sellers without going through an agent. Some of those example lists would be Continue reading Creative Financing

Real Estate Investing Topics

Welcome to our new blog about real estate investing and related topics, we will be back to update this introductory post and to add more information about investing in real estate!

Real estate investing is one of the best ways to build wealth over a 10 to 20 year period. Hey, you are going to be working, saving, and setting yourself up for retirement in one shape or form anyway, so it is smart to add this to your investment vehicles and plan. My friend Michael over at Plumber Roswell, GA has gotten started over the last 5 years and has built up a nice portfolio of cash flowing homes. There is no better way to invest your idle cash that is just sitting in the bank whether that be a CD, savings, money market, or what have you. Now, make sure to keep a rainy day fund for the bills and your monthly expenses, but any excess cash is great to invest into a property with rental income coming back to you monthly. It is very common if you find the right deals, Continue reading Real Estate Investing Topics

Investing Topics and Strategies