If you're unable to purchase a home consider finding an investor to buy it and then execute a lease-purchase option with you. A real estate lease-option contract can allow a hopeful homebuyer to apply part of the monthly rent to the agreed-upon future purchase price. Some investors purchasing homes also offer to carry mortgages for their buyers. Finding a real estate investor willing to purchase a home and then lease-option it to you or even carry financing can take some effort, though.
Finding Suitable Real Estate Investors
Investors are in the market to make money and any deal must yield that for them. For example, you may offer to pay 7 percent on a mortgage. If certificates of deposit are paying only 2 percent, a property purchase and lease-back or mortgage carry back deal may appeal to a property investor you approach. You may also offer a down payment or to sign a lease-purchase agreement giving the property investor a $200 monthly profit over his lease or mortgage carrying costs.
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Obtain a credit report and references. Property investors want to know what they are getting into and with whom so if you are prepared with this information you will send a message that you are serious and not trying anything shady.
Advertise in classifieds and in other venues such as area print as well as online real estate publications. Be specific and realistic about the price-range and size house that you hope to get, and mention that you plan to give the investor a fair return on his money.
You could also talk to an accountant, as some have clients looking for sound investments. If the accountant you consult knows of any investors he will put them in touch with you. Do not ask an accountant for the names of her clients, however. If you find a suitable property investor, follow Steps 1 and 2 above.
Real estate investment clubs are filled with people looking to do exactly what you need an investor to do on your behalf. Some real estate club members already have houses to sell on lease-purchase deals. Other investors may be willing to finance a mortgage if you agree to let them keep their name on the deed along with yours.
Do not advertise that you have $3000 or some other amount to put down. Someone may devise a way to collect it from you without ever getting you a house.
Do not give anyone any money until your attorney approves of the deal. Legitimate investors will understand this.
Get everything in writing and have an attorney look at it for you. Entering into any unconventional real estate deal is highly risky, especially if you are too eager.
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