Posted by James on July 16, 2007 at 17:47:37:
Reminds me of the question: "How much money do I take from the tenants?"
A: As much as they have!
When I have potential home-buyer for a lease option, I pull their credit and check it out. I then give them several steps to follow to build credit - secured credit cards w/ local banks etc.
In the event their credit scores fall to unacceptable levels, I can terminate their option on the property. However, I run 3-6 month options w/ a 12 month lease and the options are extendable every quarter at my discretion.
Everything is in writing - all guidelines are followed by both sides as I really want them to buy my house (for market value). I make more money when it sells.
If they mess up credit or don’t pay, that’s not my fault.
There are other people who will never purchase the house and that I KNOW will never purchase the house. I still take their money too - they know EVERYTHING up front just the same.
Ethical and morale?
I expect both sets of buyers to purchase my house at a specific time and vice versa. I’m holding up my end of the bargain…ok, now where’s JTReed at?