PGHIMC - Pittsburgh Independent Media Center

credit immobilier - Lease to Own Real Estate
by assurance credit Thursday, Sep. 22, 2011 at 12:03 PM

For those with credit problems hope seems like a long lost it when it is a very American dream of owning a house of their own.

The good news is that there are some savvy investors around willing to take the risk in those who have had credit problems, but are trying to get their lives back in order. The bad news is that this good will often have a fairly high price for consumers.

Getting into trouble with credit is a time to recover. For many, the process is long and full of pitfalls and bumps in the road. For those who are living the nightmare of poor credit there are times when the situation must seem impossible.

For this reason, investors who offer rentals of real estate on their own people with less than spectacular credit are seen as saviors on the one hand and bad on the other.

However, they are taking a risk that others are not willing to take a person who has shown that credit risk is the best deal. In other words, many discover that they are justified by charging a higher price or interest rate of traditional credit institutions will be charged. After all, your money is at stake if the lessee decides to default on the contract. It is also the money needed to make repairs that will be needed if eviction becomes a necessary conclusion.

For investors who are interested in "buy and hold" investment this is a way to make the system work for you. Often the "buyers" is another property after a couple of years and have essentially rented the property for a period of time. At other times, they seek alternative financing after they have been able to straighten out your credit situation. Either way there are many occasions when the property is returned to the investor and has become a relatively decent profit while holding those who took a certain amount of "pride of ownership in the property during that time instead of tenants ordinary often have little or no regard to the condition of the landlord's property.

It's just a way for a lease to own deal can work. The most common, however, is that there is a certain amount of time usually 2-5 years in which they are leasing the property can live in the property with part of the monthly lease applies to payment on the property once they are able to obtain traditional financing. If a twenty percent down payment is made during that time the probability of being approved for a loan are much improved. If they (the tenants) combine this opportunity with great efforts to improve their credit scores, then there should be no problem to get it.

As a real estate investor this is much more attractive than renters for many reasons. First, the maintenance in these cases becomes the problem of tenants rather than your problem, you have 'renters' who are the hope of owning the property at the time, and you can charge a little more each month's rent in order to cover the money is applied to the payment of the property.