take check or money order for L/O? - Posted by Trent

Posted by Clair-MO on September 14, 2003 at 11:17:15:

Trent, I have been doing lease options for nearly 9 years when you get ready to cash out you will need to have personal checks from the tenant buyers to make it meaningful to the lenders. The last year have your tenant-buyers pay you by personal check and hope to God the checks won’t bounce like a rubber ball back to you! You only need 12 months worth of personal checks from my understanding so the lender will loan the money to a tenant-buyer to cash you out. Hope this is helpful to you.

take check or money order for L/O? - Posted by Trent

Posted by Trent on September 14, 2003 at 11:04:35:

I have been selling on L/O for about a year and have yet to cash one out. I have about 6 going. I have them all pay with money orders from the post office as it prints the date on the original and the copy. I recently talked to a mortgage broker and he said i should be having them pay with a check and make copies of it. Is he just saying this because thats his limited experience ( he has cashed out a couple for some other L/O sellers ) or is this the norm. I would appreciate feedback from anyone who has cashed out L/O buyers on how you collect rent and document it for cash out.

While you’re waiting… - Posted by rm

Posted by rm on September 16, 2003 at 08:47:46:

for your tb’s to cash out, why not find a local lender who specializes in B and C credit and see what they say you should do.

It’s their views that will matter most, in the end.

Re: take check or money order for L/O? - Posted by Dick Chelten

Posted by Dick Chelten on September 15, 2003 at 20:29:30:

I’m now refinancing the first of 14 homes we have out on L/O. With all due respect to others who suggest you take personal checks, are they out of thier minds?

You only have to take your first personal check that bounces to realize you don’t need that crap. Keep taking money the way you are to guarantee you get your rent. Just copy the cashiers checks or money orders . It will work.

However, the way I am doing business now is thorugh Clearnow.com. Electronic funds transfer monthly from thier account to yours. It costs $1.50 per tenant each month!!

You can get a report printed out for the mortgage companies use when its time to refinance. It’s wonderful.

Never, never, never, never take personal checks. Of course, that’s just my opinion.

Re: take check or money order for L/O? - Posted by Randy

Posted by Randy on September 14, 2003 at 11:19:31:

Lenders will always ask for copies of Checks. Checks are preferred over money orders because they frequently ask for copies of bank statements as well, this allows them to see documented proof of the source of the funds, (payroll deposits- payments) they didn?t borrow the rent payment the day before.