Lenders For Lease Purchases
I have came across a problem with a lease-option I have under contract. I Rent-To-Own'd it to a tenant buyer. Everything worked just the way it was supposed to, I got a tenant-buyer who put money up-front. It was cashflowing. Then the Tenant-buyer even wanted to buy!! I was so excited! I was going to make the real money now. Right? well, here is the problem. When it came down to the Tenants getting financing, the lenders baulked at the lease option recorded at the courthouse. Upon further research I learned that Quite a few lenders are starting to not give loans for these type of deals because they consider it to be a flip. Now I know that there are litterally thousands of lenders out there. Can anyone refer me to a their lender? To clarify, i have a Lease-option with origanal seller and I am rent-to-owning it to a tenant buyer.
I want to make sure that I clarify that it is the Tenant buyers whom I am worried about. I don't need the loan myself. There should be lenders out there that are not worried about how long the previous Owner' lived/owned the property.
wow. i knew something didn't quite balance out, in my head, with L/O'ing a L/O. hahaha. i wasn't sure what it was, but you hit it on the head - you don't own it yourself to sell it (in the bank's eyes).
if you have a tenant who is paying monthly, then you should have it set up with a loan servicing corporation to show timely payments, then try to get the loan yourself (since they're paying, it shows well on your credit too). then when you get the loan, you get the deed - then i see no probs with a lender.
have you tried this? like, if you're L/O with the seller is 2 yrs and you're tenant's is 2 yrs with you, then after 1 solid year of payments, go try to get the loan yourself - so by the second year when they're ready to excercise the option, you have the deed for them (or for the bank's approval)!
i have no clue, maybe it'll work ... i'm anxious to see replies as well.
It is simply a matter hear of dealing with a competent mortgage broker. During the refi boom everyone and their mother became a mortgage broker and they were sucessful and very profitable with only one or two banks in their lending portfolio. The brokers that are more familiar with the business should get this done no problem.
myfrogger right on.
So many persons playing Mortgage Broker. The game is played with many many lending sources who you massage as needed.
If push comes to shove you of course make damn sure the appraisal is correct and shows an excellent equity. You want this new loan to be right somewhere in the 75 to 80% Loan to Value. If the credit is ok it is not a problem. The average good Mortgage Broker will merely select the right lender and drive it on thru. Leave it in his good hands, just make him aware of the problem. You might in the future watch your paper a little more closely. You are dealing with Banker types and they do not understand or accept the quick profit on flip/flop. If they did they would not be working in the bank.
Go for it. Lucius
Thanks for the reply's guys. I have a little more info for you guys though. In respose to the posts above, we checked with all of the mortgage brokers in our city and came up with the same result. The TB's opted to buy and couldn't. Now they are threatening to sue... Now, my lawyer has reviewed the contracts and says that i am in a stroger position than the tb. For the future, i would like to make a proactive step and find a mortgage broker/lender that deals with these creative deals. I would even have the TB's use an out of state broker if need be.... Again guys, thanks for the response.
-corey