OfflineI have a property which the seller is leasing my the property with the option to buy and I'm doing a sandwich lease to another buyer. My first question is, Do I run a background and credit check on the buyer who's interested in the property? If so where can I find these sites to do so. How would I be able to check if this buyer has never been evicted before?
My 2nd question, Deans coaches has advise me not to let the seller (Who I am getting the lease from) be in charge of paying the taxes and mortgage on the property. They said I should have an attorney or an escrow company handle the monthly bill payment, so the buyer (The person I'm releasing the property to) send the monthly rent to one of these services.
I would like some feed back from DGers who have done a sandwich lease or have multiple lease options right now, what do you do in these situations.
Reynold Orozco
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Reynold Orozco
The American Apartment Owners Association can provide you with tenant screening for about $50. Having an impartial third party apply the payments will insure that taxes and insurance are all paid to date and the loan will always be current.
I never though of using a third party to screen people, I will make some calls today. Thanks
Reynold Orozco
Google the American apartment owners association and check out their website. They give you a couple of options on tenant screening.
I us rentecdirect.com they charge 12.95 for background check in all states for criminal records, I usually charge $35 for a application fee per adult.
For the lease option, I would STRONGLY suggest that you either set up the 3rd party escrow, or make a deal with the seller that you will pay mortgage every month and provide proof. You don't want to assume they are paying, I have heard too many stories of the money getting pocketed and foreclosure happening, and all monies are lost.
Good luck, hope it is a profitable deal for you.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I would be checking out that website tonight. And Yes I would use a 3rd party escrow, I was just hoping someone on this site would recommend on their using with they're lease options.
Reynold Orozco