Selling on a lease option - Posted by Eric

Posted by gerald-dc on July 16, 2002 at 21:55:37:

Eric,

Are you selling the house to a cash buyer or are you doing a lease option where you getting an option deposit and renting the unit for a cash flow and hopefully are getting a nice chunk when the tenant/buer exercises the option?

If you are doing a lease/option sale, you should worry less about “mortgage company” and concentrate more on how much option consideration they can put up and their ability to make the payments.

If this is a straight sale, then you should focus more on what the “mortgage company” says.

Tip: that I read in Steve Cook’s flipping course and I’ve learn this to be true.

"Mortgage brokers CAN BE useful for qualifying buyers and getting them finance WHEN you are ready to sale. This is when you want them on your team. Otherwise…

Basically, when I think of a lease/option where I am selling, the mortgage broker role is limited to reviewing credit scores and qualifying tenant buyers IF and when they are ready to exercise their option.

One Man, One Opinion.

Regards

Selling on a lease option - Posted by Eric

Posted by Eric on July 16, 2002 at 21:15:06:

I have a house on a lease option right now. I have a buyer lined up who is getting qualified for a FHA loan. He definitely wants the house, there mortgage papers are in the mail right now. It is contingent on him clearing up two minor things on his credit, both under 200 dollars. He wants to sign a sales agreement once he gets the papers. Should I go through a broker or anything? I have the lease option signed but should I get anything else signed? Want to make this legit.