We usually talk about sellers that have a problem to solve. This week, we’ll talk about the buyer that needs help.
A young couple with a new baby would like to buy a house. Their credit is not so good so they don’t think they can qualify for a loan. Their rent is twice what it would be if they owned a home. To make matters worse, the real estate market where they live is RED HOT with 20-30 offers on each house the day it is listed.
How can you help this young family become homeowners?
Find a house that’s vacant and/or FOR RENT, or find a landlord at eviction court, and offer to buy on lease/option. Then assign and/or sandwich lease/option to the young couple, while working with a credit repair specialist, so that they can qualify for a loan after 2-3 yrs of on-time rent payments.
I would try a lease/option on this deal. I would try and locate what they want to own as a rental with an option to buy. The only thing that makes this tricky is that in today’s market you may not find a rental property where the landlord wants to sell on an option in an area the couple wants to own.
I have a great house in an “A” class neighborhood that I rent and wouldn’t consider selling it on an option for all the tea in China right now. The house is super easy to rent to great tenants that pay fantastic rent. It is a cash cow. The places I might find a landlord that would be willing to do this are probably not in areas/houses that most young couples would want to live in, at least that is how it seems to be shaping up in my market right now.
Without the employment criteria, the best recourse is to expand the circle of where they want to live. A Master Lease Option sounds like the best course of action to pursue. Even in a seller’s market, pockets exist for owner finance if they can uncover a property with a problem they can solve.