All Forum Posts by: Account Closed

@Robert Taylor  Well that's really good to know. Could you refer me to any of them? I'd really like to see what kind of strategies and models are out there, especially in our area. 

@Bryan L.  Thank you for the response. I do have the time to work with them, especially because I want to monitor the situation and make sure that it's all going well. So I have no problem with that. I'll keep looking but I just hope that I'm not looking for something that's exceptionally hard to find, like a needle in a haystack.

Thank you guys so much for your response. I'll keep investigating and doing my research until I'm set up correctly. Then I'll take a chance and do it.

So I've been reading up on L/O (lease-options) and I was getting pretty revved up because they sounded like a great way to purchase a home and cash flow with out having to pay so much money upfront.

However when talking to a mortgage lender today who about credit repair he in a very supportive way that what I was venturing to do posed many challenges.

1. He said that essentially I'm looking for a unicorn tenant-buyer

I told him that I'm looking for tenants that have just had one bad event that was out of their control happen and now they're credit is ruined and they're looking for a way to repair it and move on with their lives. He said that essentially I'm looking for the best of the worst candidates because a lot of people have bad credit because they're bad with money not because of one unfortunate circumstance.

2. He said that many people with credit scores of around 697 frequently get denied mortgages. Even though for FHA loan financing all you need is a 640.

He says that he sees that all the time. He said that a lot of what lenders are looking for is cash reserves and that most tenant-buyers don't have that. So even if they do have a good credit score the fact that they don't have money saved is why they're get denied financing.

This man was really nice and wished me the best. But he was very skeptical and I think he posed some valid points. I just wanted to post some of the things we talked about and see what you who do L/O have to say about that.

How do you think L/O fair in today's market? How are L/O working for you now vs any other time? How do you overcome these 2 obstacles, if you do overcome them? Do you you pull in tenant-buyers who already have good credit? If so for what reasons? This seems to right now be my biggest hang-up about sandwich L/Os.

Does anyone in the Milwaukee market do them? If so I'd really like to pick your brain! lol

I just want to know what the BiggerPockets community thinks about this and how they get around these obstacles because I know these techniques wouldn't be around if people weren't making money off of them. But if they do work how do they work in today's market? Let me know what you think. I can't wait to hear your responses.

@John D.  Thanks so much for the details. That's really helpful for me in choosing which credit repair program to use. They seem very knowledgeable and now this isn't the first time I've heard of them. I did some cold calls to mortgage lenders in my area and one of them said they use ownthekey.com as well. They're starting to sound pretty popular and reputable so I'll definitely go on the site do some more research and then I'll call and ask for info (maybe an investor friendly info packet) before making my decision. I've got to research some others too, though. But thank you again for all the feedback!

@John Jackson  Thank you so much for the insight. You have so much knowledge and I really appreciate you sharing it with me. 

This hopefully will not help only me but other people who have had the same questions.

@John D.  By the way how many people have you put on ownthekey.com and what percentage of them have resulted in them getting the finances for the home and buying the house?

@Account Closed  so what you're saying is that I should keep the contract they give me and if they don't improve the T/Bs credit I should get my money back.

@John D.  Thanks for the recommendation, I'll look into them.

@Account Closed  They do charge an upfront fee. Why is that not a good thing?

Hi everyone,

I'm trying to learn as much about Lease Options as possible. I've been reading Wendy Patton's literature and watching her videos. In one of her videos she mentions Clean Slate Credit Solutions as the company that she uses for credit repair for tenant-buyers. According to her people become creditworthy within 5-6mos of starting in the program.

I would like every tenant-buyer that I have be able to purchase the home after the lease period. So my questions essentially are:

Has anyone heard of/ use Clean Slate Credit Solutions and what do you think of them? What results have you seen with them?

If not what credit repair programs do you use and why? What results have you seen with them?

Thanks guys!

@John Jackson Thank you so much for your post. It was all really helpful. I will read up about FHA now soon.

I already did some research on secured cards and they sound great. How do you get your T/Bs on the right track with a secured card?

Thank you @Robert Leonard for sharing the link with me to that thread. I completely agree with you, that is not something I would advise anyone to do and is not anything that I plan to do in the future. I want to make my money honestly not in a way in which I am taking advantage of people. Thank you for sharing this perspective on LOs. We should all be cognizant of what we're doing as investors so that way we are not giving ourselves and our fellow investors a bad name.