Property Investing Secrets: How to Sell to 100% of the Market Place Using Lease Options When property investing, you will find if you make houses easy for people to buy, your properties will become easier to sell. Most people who are selling houses today are selling to the 80% of the population who have good enough credit to qualify for a bank loan. These buyers have choice. They have been approved for a loan and they can look at 20 or 30 properties and negotiate hard with the sellers. Its important to note when property investing that this is not necessarily your market when you sell on a lease option. Ive found when property investing that when your exit strategy is to lease option to a new buyer youre targeting people who may not immediately qualify for a bank loan. This makes up about 20% of the population. Perhaps they are investors who cant get any more bank loans or theyre new to the country and havent established a credit file that will satisfy banks. Sometimes they have a lot of cash but didnt pay their credit card or phone bills on time and they cant qualify for a loan due to these credit issues. Also a divorce will hurt credit files. Usually it is not major things, it is just credit issues that stop people from getting a bank loan today, but they can probably qualify in a year or two. And what youre going to find is when youre property investing is that by offering a lease option to new buyers you will appeal to 100% of the market place who are looking to buy a property, not just the 80%. Later down the track after you buyers have made payments to you they will probably want to refinance and pay you off in a couple of years. A fundamental rule of property investing is when you lease option you are attracting a lot more people because you dont have the same guidelines as a bank. You make it a lot easier for people to get in-to purchase a property. And the benefit to you is that youve made your property easier to sell. |
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