Commitments to the Tenants

If you have tenants in your home, you have certain responsibilities to them.  If you’ve got contracts with them, you need to follow through.  Take care of the house, make sure it’s livable, keep open lines of communication.  You have to view it as if your sellers and your tenants are your customers.  I’m tougher on the tenants because they screw up deals more often, and that’s not really an issue with the sellers, but I still always keep my end of the bargain.

Tenants

Make sure that you’re keeping your Realtors, lenders and others informed at all times. Communication is key!

My goal is to get people to buy and I’ll do whatever I can to help them, but I can’t make them a responsible person or tenant.  I can’t even make them close the deal.  Only about half of my tenants ever get to the closing table, and many will walk away from their option fees after only a few months of tenancy.  I have stopped trying to figure it out.

Excerpt from Investing in Real Estate with Lease Options and "Subject-to" Deals.

When you are selling a home as a rent to own or lease option, whether you are a home seller, a real estate agent, or a real estate investor, you must get your tenant-buyer to close on the home to complete the sale. Most tenant-buyers these days need to improve their credit to qualify for a mortgage. It's a lot harder to get loans now than it used to be. Some rent to own buyers have been through foreclosure or bankruptcy, others lost their jobs before coming to you, sometimes they just had too much debt and needed to pay off some bills. Whatever the reason almost all tenant-buyers need to improve their credit before they can complete the purchase of a rent to own home.

The rental period during the rent to own gives the tenant-buyer time to improve their credit and qualify for a mortgage. The question is should they work at it themselves or should they sign up with a credit repair company? Credit repair companies have been making some news lately, although not all of it is good.  Because improving credit is so important for rent to own buyers so they can qualify for a mortgage, I have decided to host a webinar that takes a look at credit repair. We'll look at whether credit repair is a scam, and whether it can work. This webinar is absolutely free so I encourage you all to sign up.  You can sign up on my Wendy Patton website. The webinar is Wednesday, April 29th, at 8 PM EST.

Remember, that improving credit is absolutely critical for tenant-buyers to purchase a rent to own home so you don't want to miss this.