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Ammad Awan Glasgow - Creative Real Estate Finance Made Easy

With the real estate market evolving, there are fewer banks approving mortgage loans as a result of the change in qualifying factors. For individuals with less-than-perfect credit or not enough cash for a down payment, the doors have been closed for them and many individuals wishing to become homeowners.

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Ammad Awan Glasgow - Creative Real Estate Finance Made Easy

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  1. Creative Real Estate Finance Made Easy AmmadAwan Glasgow

  2. With the real estate market evolving, there are fewer banks approving mortgage loans as a result of the change in qualifying factors. For individuals with less-than-perfect credit or not enough cash for a down payment, the doors have been closed for them and many individuals wishing to become homeowners.

  3. Rent-to-Own Homes • Rent-to-own homes or lease purchase options have become a great source of income for the real estate investor and a lifesaver for those who would otherwise not be able to purchase a home.

  4. Benefits to real estate investors: • They are receiving a residual income. • They are assisting others obtain a goal that otherwise would not be possible. • Their investment is secured by a non-refundable deposit, which the buyer forfeits if the deal does not go through.

  5. Benefits to the buyers: • They can move into the home before they actually purchase it. • Many times, their deposit will be applied to the purchase of the home. • They have a chance to improve their credit rating while leasing the home. • They have a chance to save for the down payment while leasing the home.

  6. How Lease Purchasing Works • Normally, this rent-to-own or lease purchase agreement requires a non-refundable deposit, which is the "option payment." • The length of the lease is set 12-24 months, or whatever is agreed upon.

  7. Lease purchase or rent-to-own options are an excellent way for a real estate investor to make money because they have multiple sources of income from this one property. They receive the option deposit; they receive monthly payments; and at the end of the term of the agreement, they will either walk away with the proceeds from the sale or the forfeited deposit.

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