Rent To Own
I heard a guru talking about rent to own or lease to own the other day and he didn't come right out and say it , but he seemed to be alluding to a strategy that he used to deal with Sec. 8 tenants and use some of their rent payment as a payment towards ownership. Is this possible? Your contract is with HUD right? So how can you use govt $ as a rebate back to them for equity build up?
Is he only talking about those tenants that also contribute to their rent with their own money? And even then wouldn't HUD disqualify anyone who has money "invested" in real estate?
Did I miss the point entirely?
Thanks Dale :-?
Check out the Lease Option Forum on this site. L/O is what this guru was refering to. Although I don't know exactly what this person said, I imagine he mentioned Sec. 8 tenants because good L/O candidates usually come from lower and lower-middle sections of the economic scale. Most people purchase through L/O because they either don't have the money to put down a large downpayment now or because for whatever reason, they don't qualify for traditional financing at this time. anyway, check out the L/O Forum. You'll learn a lot about this there.
Good luck.
Thanks for the tip. It makes alot more sense now. So in other words it has nothing to do with govt funds.
You almost let it go
I also became interested in this method of selling. After researching HUDS site and speaking with a former HUD guy, I found it can be done through http://www.hud.gov/offices/pih/programs/hcv/index.cfm
Basicly by using "homeownership vouchers" the Sect 8 tenant gets a mortgage and as the seller you sell them the property and get paid NOW !just like anyother deal.
There are some particulars you need to address (the tenant needs to address) like getting the applicationin and meeting the guidelines. And obviously HUD rules etc. so all is above board.
Hope this helps and I'm certain there is more. I too am researching this area and will let youknow more as I find by posting here or e-mail.