Posted by SCook85 on February 18, 2002 at 08:41:45:
Steve,
I have used this program with much success. In fact during my busiest times of buying, if it weren’t for this program I wouldn’t have been able to get all of my homes sold. I would never have been able to renovate the homes myself. The advantages to this are:
-
Your buyer takes the home in as-is condition. (I would repair major things like a furnace or something). They perform the work and have to be happy with it since they did it.
-
many people find the program very attractive because they have no other way to purchase homes.
-
If your buyer moves out or defaults, you usually get your home back in better shape then when you started.
Disadvantages
-
Most of the people I used this program with never bought the homes. They had bad credit going in, they had bad credit trying to get out.
-
This is not an impossible sell with lenders but it is a hard one. Every one of these that I did close required a lot of hoops to jump through.
If you decide to go this route I would count your profits right away. I would look at this if I were back in the “rent to own” business. I would just assume that I was going to end up keeping everything as rentals, with my tenants fixing them all up.
I hope this helps,
Steve