Have First Lease Option Deal But Owner Wants Credit Check?
here is my problem. found owner who is open to the sandwich lease option. she wants to run a rental ap on me which includes credit check and credit card and savings information. she actually has on her form what is your credit card number and banking account number. do not seem right to me. also all of here properties have mortgages that are high for the area. she cannot sell them because she refinaced them and the sell price is to high. what should i do.
:-?
walk , no run away from this deal too skinny - and a bit of too much trouble
The deal is not a good one and the seller knows this.
On the credit issues...
I run checks for all deals when I am leasing something. In some cities it is strongly encouraged as a way to screen out people with a criminal record. In particular, drug dealers who have large deposits.
If you vary your policy you need to have a very good reason so that you can prove that you are not bias towards certain groups or classes of people.
Now, if you are doing a lease/option and the person can pay the deposit and it is large enough the default risk is not the issue. The ability to know who legally is there, to serve the correct notices for evictions and to have a sense of how to trace the person if it comes to that makes a 'credit check' reasonable.
So, I would still do a check but I do not expect a high score or anything. I just want to know my customer.
I have never turned down someone just for bad credit. I have had people decline to apply to rent because they know they have completely terrible credit. None of these were lease/options deals.
John
[addsig]
Personally, I don't think she's motivated enough; however, her rental app sounds like it is probably just a standard form she got at a local store or online. If you go to the local police department and do a criminal background check on yourself and bring her the results, it will probably satisfy her.
thanks for you guys resonse. the deals are to skinny to begin with. this was my first l/o deal so i was eager to get one under my belt?
I made the mistake of being too eager and didn't buy right on my first property. I lost $25,000!
The knowlege gained, however, was invaluable.
"By three methods we may learn wisdom. First, by reflection, which is
noblest; second, by imitation, which is easiest; and third, by experience,
which is the bitterest." -- Confucius
Winners are not afraid of losing. But losers are. Failure is a part of the process of success. People who avoid failure also avoid success. --Robert Kiyosaki