L/O - Buyer's Financing
This has to be a dumb question and have a very simple answer, but it's one I haven't figured out.
If you L/O a house to someone for .. say $5,000, how are they coming up with that money? If they have $5,000 why aren't they just buying a house through conventional means?
I guess it's possible that although they may have this money in savings they still don't qualify for a loan. Is this the answer?
Quote:
On 2004-06-17 13:44, MicahM wrote:
I guess it's possible that although they may have this money in savings they still don't qualify for a loan. Is this the answer?
This is part of the answer... There are several reasons why people want to lease option and the endless list goes on and on... Maybe they want to check out the area before they decide to jump in and buy a house... Maybe they have a bankruptcy in their credit history and they are waiting another year or two to qualify for a loan, maybe they don't have excellent credit and L/O is a way for them to show the fullfillment of their obligations to pay on time... There are many reasons - but remember that there are a lot of people (at least in NJ) that are looking to l/o and they have cash to put down...
Good Luck!
[addsig]
Great reply, thanks a ton!
I have a big problem finding Tenants with a REASONABLE down payment! I get people to call on my properties but they seem to be those who only have $500-$2000 down! I specifically state in my ads and my site that 3-5% is required. It gets bothersome sometimes. It seems that getting the properties are easier. Any advice or like experience?