One thing I put in all my contracts was that they needed to work with my banker. Although, they can work with whatever banker they want, I like them to work with mine so I can track what is going on better.Every month they pay their rent, I make a copy of the check and fax it to my banker. I also put a copy of it in their file.
The renters consult with him monthly to figure out what they need to do to raise their credit score high enough to buy the home.
Every one had a different story. Some had judgements they needed time to pay off. One didn't have any credit at all and needed to establish it.
A banker is really the key to not only funding your deal, but to figure out if a person is a good risk to take a chance on them to let them do a rent to own.
One thing that happened in the Fall of 07 is the sub prime market disappeared. That meant that you needed at least a 620 credit score to get financing all of a sudden.
What did this banking change do to the market?
All of a sudden, the bank wasn't giving loans to people with just a heart beat. They actually needed a 620 credit score.
Also, this exploded the rental market. More people now have to rent which pushed up rents.
This also helped expand my rent to own target market as I will explain in the following chapters.
Call KC Kuttler at 208 406 3834 to find out what type of loan you quality for and what is your maximum price range.
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