Many of us that consider doing a lease option may hold off because using a lease option may mean we have to receive payments for months before a tenant is "ready" to buy. Which means we have to wait for our large sum of money.
How do we get them to purchase quicker? Help them get their credit up. They only need to be as high as an FHA loan. This would mean a credit score of 600-620. For many buyer this in not a large jump and they may be just out of range of being able to do this.
A unique way that you may consider helping the tenants credit score to rise would be: Take their option consideration then take this to bank #1. Create a checking account in their name. Have the tenant ask for a loan equal to the amount of the checking account with the checking account as security. Then take this loan money to bank #2 and do the same thing. Then onto bank #3 for the same. Once you are done with bank #3 pay off bank #1. Once this has been done a few times do it again one more time but do not pay off the entire amount. This would mean that you have a balance at the three banks. Pay these payments for 3-6 months and poof - better credit. If this is done right you can get the tenants credit high enough to help them finance out of the lease option. (This information was given at Deans Live Event).
Higher credit can be done in 3-6 months. This means a lease option sale in 3-6 months - for full amount.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125