Real Estate Lease Option Danger

Why are real estate investors having so much successoffering "rent to own" homes?

Lease-options offer home ownership opportunitiesto folks with little cash and not so hot credit.

Oh boy, there are plenty of those around.

Both parties in a lease-option deal are counting on thebuyer being able to qualify for a home loan before the option expires.

The investor wants to collect his profit when theoptionee buys. The optionee wants to own the home.

During the lease period the renter/optionee must be working to improve their credit score to the point where they can qualify for a loan and buy the home.

Even though there is plenty of subprime loan moneyfloating around at the present time... the lease-optionmethod of acquiring a home seems to appeal to many.

In our own investing program.... Before we accept someone for a lease-option deal we have them interviewed by our friendly loan broker. He gives us thumbs up or thumbs down on whether our prospective buyers has achance to qualify for a mortgage loan loan during the next 12 to 24 months.

It would be unetical and dishonest to enter into alease option deal with a couple whose credit could neverbe cured even with a miracle drug.

We are not aware that it has happened, but we fully expect to see a lawsuit filed against some careless investor who does a lease option deal with someone whose creditis beyond redemption.

That renter/optionee has been lead to believe he can buy thehome and when he finds out he can't we are sure somehungry lawyer will rush to their rescue.

We can visit that investor in jail and bring him a copyof a "no money down" book with a file hidden inside.

About The Author - Mark Walters is a real estate investor and author. Hispublished works can be found at his web site...http://www.CashFlowInstitute.com

MORE RESOURCES:

ERA Pacesetter closes real estate business - Bizjournals.com

Learn to Profit from Real Estate - Even in Tough Markets - MarketWatch

Tokyo Replaces Shanghai as Best Asian City to Buy Real Estate - Bloomberg

Nokomis Real Estate Ventures LLC files bankruptcy petition - Bizjournals.com

Neuberger Berman Real Estate Securities Income Fund Inc. Announces ... - MarketWatch

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UPDATE 2-Sibir market value halves on real estate buy - Forbes

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/5i-0fd=Rurl=http://www.guardian.co.uk/business/2008/dec/03/sibir-russia-oil-property-tchigirinskicid=1277136024ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNEuTz1x7uFZa1P7GmoKkR7uO6b4-Qimg src=http://news.google.com/news?imgefp=G0Z9onrcFO0Jimgurl=static.guim.co.uk/sys-images/Business/Pix/pictures/2008/12/03/sh4.jpg width=80 height=48 alt= border=1brfont size=-2guardian.co.uk/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/5-0fd=Rurl=http://www.forbes.com/afxnewslimited/feeds/afx/2008/12/03/afx5771724.htmlcid=1277136024ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNGcsuzF3UkFrQosmUr0QGl7eeuFqgUPDATE 2-Sibir market value halves on breal estate/b buy/abrfont size=-1font color=#6f6f6fForbes,nbsp;NYnbsp;-/font nobr13 hours ago/nobr/fontbrfont size=-1Sibir had already outraged minority shareholders when it said in October it would buy some $157 million worth of breal estate/b from its key owner, b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/5-1fd=Rurl=http://www.reuters.com/article/rbssEnergyNews/idUSL364626620081203cid=1277136024ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNEdNGhaRYLJKHy6cTsFZZ4Agbm99QUPDATE 1-Sibir shares sink 30 pct on breal estate/b buy/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/5-2fd=Rurl=http://en.rian.ru/business/20081203/118667008.htmlcid=1277136024ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNF3CG2cJ-iBc4ge26SScXLLeXcKngSibir Energy to buy $340mln breal estate/b assets from developer - 2/a font size=-1 color=#6f6f6fnobrRIA Novosti/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/5-3fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3DaS_Y7fzEKDYc%26refer%3Dhomecid=1277136024ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNHbGqpC2tWtO7HxeVFEM3UkG41abQSibir Plunges 57% on Russian Billionaire ‘Bailout’ (Update4)/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/5-4fd=Rurl=http://www.guardian.co.uk/business/2008/dec/03/sibir-russia-oil-property-tchigirinskicid=1277136024ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNEuTz1x7uFZa1P7GmoKkR7uO6b4-Qnobrguardian.co.uk/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/5-5fd=Rurl=http://www.themoscowtimes.com/article/600/42/372867.htmcid=1277136024ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNHdxHwlZl7VjfoeIqZIxT6bCgn6lgnobrThe Moscow Times/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277136024hl=ennobrall 85 news articles/nobr/a/font/div/font/td/tr/table

Icahn Sues Real Estate Company Over Debt - New York Times

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Whitehall Funds Lose Their Luster - Wall Street Journal

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/7-0fd=Rurl=http://online.wsj.com/article/SB122826598899374457.html%3Fmod%3Dgooglenews_wsjcid=1277094278ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNE0ZSFU74UfSFI0pbI0xvusyOoTswWhitehall Funds Lose Their Luster/abrfont size=-1font color=#6f6f6fWall Street Journalnbsp;-/font nobr20 hours ago/nobr/fontbrfont size=-1By ANTON TROIANOVSKI and LINGLING WEI Goldman Sachs Group Inc.#39;s Whitehall family of breal-estate/b funds is struggling with weak performance and potentially b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-1fd=Rurl=http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN0351371720081203cid=1277094278ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNHKm9AnyZ7BEAXy2PSlK9d-x_Pg8AGoldman Whitehall head warned of firm#39;s exposure/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-2fd=Rurl=http://www.reuters.com/article/marketsNews/idUSBNG24933320081203cid=1277094278ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNGisbgOobDBB9_sLgNwjyIw-LZcGAGoldman Whitehall funds hit by property slump-WSJ/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277094278hl=ennobrall 12 news articles/nobr/a/font/div/font/td/tr/table

Freedom Interactive Launches New Real Estate Vertical - Destin Log and Walton Log

Inland Real Estate Auctions, Inc. Sells Industrial Site in Seneca ... - MarketWatch

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/9-0fd=Rurl=http://www.marketwatch.com/news/story/Inland-Real-Estate-Auctions-Inc/story.aspx%3Fguid%3D%257B11D52A18-4076-4474-9C4A-F7F53F1C183D%257Dcid=1277200823ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNE0GfeDTYHmWLCj_18pWT7q_5SXCwInland bReal Estate/b Auctions, Inc. Sells Industrial Site in Seneca b.../b/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1One of the nation#39;s top auctions firms, conducting transactions from coast to coast, Inland bReal Estate/b Auctions, Inc. is a leading provider of accelerated b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/9-1fd=Rurl=http://www.marketwatch.com/news/story/KPMG-Corporate-Finance-LLC-Taps/story.aspx%3Fguid%3D%257B0B78E8A1-8AEC-4007-AF82-59A1AB3B7581%257Dcid=1277200823ei=wzM3SfFPlY71BNbqhLEPusg=AFQjCNFvBYCEY7lQLtoJxAQyiytCFw8AOAKPMG Corporate Finance LLC Taps Renowned Auctioneer Frank J b.../b/a font size=-1 color=#6f6f6fnobrMarketWatch/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277200823hl=ennobrall 11 news articles/nobr/a/font/div/font/td/tr/table

Real-Estate - Google News

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