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Makrita
real estate investor
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Lease / Option Tenant Buyers
Friday, March 09 2007 12:25 PM
I'm getting a large amt of these candidates off of my website and www.craigslist.com However, the big problem I'm getting is that after my initial phone call, they do not follow thru with filling out the credit app online and sending it in with the $25 credit check fee.. Is this part of the 'culling' process? Do you find this to be normal behavior (i.e. Parado's rule 80/20)? Or do I need to do a major 'sell' with these candidates on the benefits of 'owning', etc.
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Marty Couch
Investor
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Re:Lease / Option Tenant Buyers
Friday, March 09 2007 04:38 PM
I would imagine that many people who are looking for a lease option situation know they have credit issues to overcome or they would buy outright. They may be talking themselves out of the idea of lease/optioning because they believe once we get the credit report we will turn them down right away.
I have 2 properties with lease option tenants in them. I let them know that I would need to run thier credit so we could assess thier current situation together and determine what length of time they would need the lease period to be in order to overcome the issues that may be in the way of thier obtaining a mortgage. This has worked well for me. It seems they just needed to feel I was obtaining credit reports to make it a win/win and not to weed them out. I have been lucky that in both cases I got good tenant buyers right off the bat without sserious credit issues. As they know we are "working together" so they can buy the house, they have paid like clockwork as well.
Hope this helps.
Marty Couch
http://www.PPLChicago.com
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Re:Lease / Option Tenant Buyers
Saturday, March 10 2007 07:11 AM
Makrita,
We only charge an app fee if they do it in person. Otherwise, we do not charge them if they fill out the app online. this encourages them to fill out the app and not hassle with having to get the fee to us. Hopefully you are talking about making thousands of dollars with your lease option and therefore the app fee is incidental.
You might also consider telling them on the phone, "Bob and Sue, I realize that you probably have some credit issues but, do not let that prevent you from submitting your application."
Randy Hughes
866-696-7347
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