Lease Backs On New Build Models.
Are lease backs good to get into. Example: A new home builder is building a community and they have are willing to lease back their models. What do I need to know to effectively acquire a lease back from this home builder and what do I need to know. Thanks
Comments(0)
Adogg,
Did you ever get the info you needed to make a decision on the Lease Back on model homes. I curious what you have learned. I have an opportunity to do the same thing with a builder across town from you in Sun City West.
John
I like the concept of lease backs. It provides a stable positive cash flow and an opportunity to capture equity at a later date. I recently did a couple lease back deals and the buyer captured 10% equity with the purchase of the house and positive cash flow during the life of the lease. Pretty cool.
Archie
[addsig]
Can someone explain how a lease back with a builder works exactly? Thanks in advance.
you buy the house. They lease it back to use as a model.
Since there are no entries on the T/B credit report showing timely payments, we (mortgage brokers) use the cancelled checks to show that the T/B has been making timely payments, after 12 on time payments, we can treat the loan as a standard refi.