In this changed real estate market, lease options are again becoming a viable resource for buyers and sellers. The stricter lending guidelines have made it harder for buyers to get into a home. On the flip side, this reduced buyer pool has made it harder for sellers to get their home sold.
The exotic loan programs of 2007 and before have created an ongoing implosion in the lending and real estate markets. You see many people facing foreclosure or forced to do a short sale (the outstanding loan is greater then the property is worth in the market). In most cases, these home owners haven't lost their jobs. The main problem has been a readjusted mortgage rate that they can no longer afford.
These displaced owners now need places to live. Remembering that they still have their jobs (income) and a desire to own a home, a lease option is a great way for them to go.
In the middle of the two you have the real estate investor. They have an opportunity to set up a deal with these folks. The former owners get another chance at home ownership while the investor gets a tenant with aspirations of owning property. This means a better quality tenant and little to no "tenants and toilet" hassles that are more common in a standard, straight rental. Now is a good time to make money with lease option investing.
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