Success Percentage
To all experienced L/O investors:
What percentage of your tenant-buyers ACTUALLY buy the property from you?
We are dealing with houses typically in the range 100K to 130K. Option payment we receive from T/B are typically from 3K to 4K. T/B have trimerge median credit scores ranging from 525 to 625. We see about 50% of the T/B buying the house from us....please share your numbers...
HOw care who actually buys. Make your money on the front end. Do one year option only with T/B and many will rte-sign for 2-3 years. If they can't get financed. Then put them on a 40 year land contract at 10.99%.
About 20%. No big deal though if you keep turning it over and collecting option $$.
In the general area of the city of Pgh the rate is about 25%. In the suburbs it is about 30%.
Lori
[addsig]