Posted by SCook85 on February 18, 2002 at 08:41:45:
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.
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,