Posted by E.Eka on October 13, 2003 at 10:49:29:
I don’t it really matters that much whether you live in the sticks or if you live in a metro area. L/O works with tenant/buyers who are unable to find financing with a lender due to credit problems. a Lease option give them the opportunity to get into a home without having to deal with a bank or mortgage lender/broker. In a way you provide seller financing in a creative way that nets you a profit in 1-2 yrs. Provided the tenant/buyer exercises their option. if not, you have the down payment money as well as the small cash flow that may have been used as rent credits.
Now is a good time to get into the L/O business. Rate are low which would allow you to get property at good rates. As the economy recovers and rates rise. Many potential homeowners who weren’t able to get a mortgage will have to go back to renting. There has also been a growing number of forclosures in this country so homeowners who are defaulting will need a place to live. L/O maybe a good option. (Albeit, it would be just a lease because if they couldn’t afford to keep their first house, what makes you think they’ll pay you on time?)