Trying to understand LOA's a little better

[Chase Hancock]

So recently I began studying lease options and haven't quite wrapped my head around it yet so please help me clarify things. In short these are the steps I need to take: 1. Market for low equity homes with motivated sellers, FSBO's, FRBO's, etc. 2. Get the house under a lease option contract 3. Market for tenant buyers to whom I plan on assigning the contract to. Here's where I get confused. With the Dod Frank Act and all, do I need to prescreen my tenant buyers and have them go through an RMLO? And then once verified do I get them in the house and put them in a credit repair program? When do i need to talk with a mortgage broker? These are a few questions I have in this area of LOA's and would greatly appreciate your feedback to help me understand the whole process better. Thank you!

[Brian Gibbons]

@Chase Hancock

1. What are the "escrow instructions?" (I use a letter of intent to lease option, with full knowledge of selling the contract).

2. When i find a tenant buyer and screen them, what do i do next?  

(I use an Earnest Money Agreement with the Tenant Buyer, 

TBer puts 3% and First and Last Mo Rent into Escrow, 

TBer has 7 days to either get a property inspection, or a builder, at their expense)

3. What contracts do i need for the whole process?

Depends on the State you are in.

See my

4. When do i put them in the house and assign them the contract?

After they pay the money in #2, after they sign up for Credit Improvement, after their traditional screening Landlord Tenant process has passed muster.

JUST BECAUSE THEY HAVE 3% does not mean they move in!

JUST BECAUSE THEY HAVE 3% DOES NOT MEAN THEY MOVE IN!