setting up the rent 2 own

[LuckyBuysYuckyHouses]

Interesting question, though, and one to which I don't know the answer.

If a lease-option buyer makes good on the option and wants to buy, how does that initial "down payment" make it to the HUD-1 (or does it?), and if it doesn't, how does the lender get comfy that there's equity in the deal?

It shows up on the HUD, because you signed a lease option contract stating the money was recieved. I have personally never ran into a situation where they asked for proof of funds recieved. But I guess it would be a good idea to keep a copy of the canceled check or money order.

[Gary L]

I wouldn't use any method other than rent-to-own (L/O) unless they hand me cash for moving SFH these days. Back about a decade ago I was building custom homes in TN and would have to wait for closings, the inspection would be delayed, blah, blah... before moving on to the next deal. And I too was licensed as a mortgage broker.

The Lease2Purchase option allows you to get cash up front, charge above market rents (you can credit some back toward the down payment each month, but only if they pay on time every month so no more worrying about late payments), more control over the contract since you write it, all maintenance and repairs under say $500 paid by the buyer) tons of prospects to add to your buyers list, normally a higher than market price since you're giving great terms, ... the benefits are too numerous to list.

You should consider doing this in your area. Start with a fixer, then sell as a Lease/Option, build a list of buyers, find more property, sell on L/O to your buyers list, grow your credit and cash, buy a lot, build a house as contractor, place permanent financing, sell on L/O... rinse and repeat!

Then get into large apartments and commercial buildings for the real $$$

Good luck investing!      Gary

[stevie-o]

what you just described Gary is exactly my game plan.

Have you been able to get your properties occupied quickly?