This is part 6 of my series teaching from a one-pager that takes us through the steps of lease option deals. I’ve made several podcasts lately from this one page of ‘how to wholesale’ information.
Gavin Timms is in the car with me. He’s in St. Louis because we just finished another Implementation Workshop. If you want to get the boost this workshop gives, go to CoachJoe.net to sign up.
This show is about reviewing and approving tenant buyer applications. Remember that lease options, like any retail real estate transaction, have to be desirable homes in desirable neighborhoods.
You want to offer a mid-priced home in a decent neighborhood, and you want to set your rent at a competitive rate. That way, you should get several tenant buyers applications to choose from.
Do a background check on all applicants. Find a company that uses human beings to dig into the info. It’s easy for applicants to lie about employment and past landlords. I’ve seen a lot of that.
The tenant buyer you select needs to be able to pay the rent on time and qualify for a mortgage in a year or two to buy the house—not everybody fits the bill.
Once you choose a tenant buyer, there’s a good bit of paperwork. It’s important to get it right. There are separate contracts for the lease and the option to buy. Some of it must be filed with the county.
Yeah, I’m telling you there is a lot of paperwork, but it’s not difficult to complete. Just be methodical. If you take my Simple Lease Options class, you will have access to the forms I’ve been using for years.
Listen and learn:
- Remember that the seller has the right to approve the tenant buyer.
- Background checks, including a credit report, are extremely important when vetting a tenant buyer.
- Think about using a mortgage broker to help you find a qualified tenant buyer.
- You can get even more lease option tips by taking my Simple Lease Options class.
Mentioned in this episode:
- Joe’s podcasts on iTunes: REIM Podcast
- Get Joe’s book: WLOBook.com
- Take Joe’s SLO class: SLOclass.com
- Sign up for Implementation Workshop: CoachJoe.net
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