How can I find an investor to purchase a home I am interested in & lease it to me with an option to buy within 1-2 years?

Asked by Carleen Goodridge, Fort Worth, TX Tue Oct 18, 2011

I have found a home I would like to purchase, but do to current credit score cannot be approved for a mortgage, I will reduce credit debt by this February, maybe before, but have been told it will take a few months after that to build score back up. I am sure I will find another home later but have great interest in this particular home. Are there investors out there willing to enter into a lease to purchase contract?

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8
Dallas Texas, Agent, Dallas, TN
Tue Oct 18, 2011
Investors purchase homes BELOW market value. If there is NO MONEY to make a profit what is the point ?

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
1 vote
Deb Prange, Agent, Arlington, TX
Tue Oct 18, 2011
Carleen,

I work with an investor that will do just that if the numbers make sense. Give me a call so I can help you.

Deb Prange
817-269-0689
1 vote
Rick DeVoss, Agent, Ft Worth, TX
Tue Oct 18, 2011
Dear Carleen,

The basic answer is "Yes", ---BUT, it is much more complicated than that! You need to call me and we will discuss it in detail.

First, the price of the house has to be reasonable in the eyes of the investor. (For HIS purposes, not yours)

Second, it has to appear to be a good rental investment to him.

Third, he would have to make a profit on the resale of it, so are you willing to pay a premium price next year when you buy it??

And fourth, a "lease to purchase" contract cannot be written by a Realtor, and even some attorneys will not touch it. Too messy. (Most folks rent first and buy later when they can qualify.)

How do you know that your credit score will be acceptable by next year? I can help you repair your credit score, but we cannot guarantee it will rise to the threshold level required by a mortgage company by next Summer.

So you are talking about a very tricky situation, that is very complicated. Please call me for a free consultation, and we can discuss the details to see how we can achieve your goals. I can help you, but only if you contact me right away so we can get started on the credit issues.

Best regards,

Rick DeVoss

---The Michael Group

817-300-6121
1 vote
Scott Godzyk, Agent, Manchester, NH
Tue Oct 18, 2011
Carleen this is very rare, not impossible... but would have to be purchased at a price low enough to entice an investor. The one thing is there are many scam who pray on people who are searching for similar types of leases so please be careful when responding to offers. Make sure they do own teh house and bnever wire money or pay cash. Never agree to rent anything that you have not seen as well. good luck working things out. your best bet may be to work with an agent who can assist you with a lease option so they can guide you. good luck
Web Reference:  http://www.ScottSellsNH.com
1 vote
Tim Cook, Other Pro, Weatherford, TX
Wed Oct 19, 2011
Hello Carleen,
I am the investor you are looking for. All the answers you have received to date has all been good advise. Being in the business for almost 12 years I've seen a lot of the mess created when these deals are not done correctly. Texas is very difficult to do lease purchase or lease option now because of new laws implemented 2-3 years ago and I'd recommend staying away from them all together. The solution to this is to buy with owner financing where you get the deed. You own the house, you make payments, you build payment history as an owner, you get the tax deductions and at some point in the future you do your re-finance into a new mortgage. Of course there many moving pieces to the entire process. We'd be happy to work with you to see if we can make the deal work for both you and I and the seller of the house so it's not an easy task. We do several of these types of deals every year to help families become homeowners and own a piece of the "American Dream". Come visit us online to learn more about how we help families Own A Texas Home.

Tim Cook
817-599-8058
Web Reference:  http://www.OwnATexasHome.com
0 votes
Carleen Good…, , Fort Worth, TX
Tue Oct 18, 2011
Great advise all around, thank you... The home is BELOW market value, it is actually going up for auction in a few months... another reason I decided to ask this question... I know I should probably wait till my credit is repaired, but figured what is the harm in looking at other options...
0 votes
John Reaves, Agent, Fort Worth, TX
Tue Oct 18, 2011
Carleen,

As most have told you a lease option is very complicated and would need to be drawn up by a real estate attorney. You would want to have your own attorney either draw it up or at least review it to make sure everything is done correctly.

Please remember, you can never be sure that in a year or so you will be in a position to buy the house. Part of the reason for the real estate down turn we are exasperating, is a lot of good people entered into contracts thinking within the next few years their situations would be different and they could afford the homes they bought.

My advice to anyone wanting to buy a home would be first talk to a lender and see if you qualify. Then make sure you have your down payment. An FHA loan requires a minimum of 3.5 percent down. Find a nice home you can truly afford and go through the traditional channels. Also, don’t forget about your closing cost which can run between 6-8 percent.

If you would like to discus your options you can contact me anytime at 817-920-7700

Good Luck
John Reaves
0 votes
Bruce Lynn, Agent, Coppell, TX
Tue Oct 18, 2011
Never ever do a lease/purchase lease/option type of contract.
They're normally horrible for situations for buyers.

I suggest at this point you just do a straight lease.
Then when you are ready to buy, take that action.

Many of the worst situations we see are people who have gotten into the lease option type of deals and they end up losing so much money.
0 votes
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