While running our wholesale real estate business, there have been a lot of folks who have contacted us who are behind on their payments or have other problems with their home, but although they are definitely ‘motivated’… they don’t have enough equity in their home to make it a wholesale deal.

At first we were thinking that we were unable to help these folks, until we realized that we were able to market to Lease Option buyers and then purchase the home ‘Subject To’ the existing mortgage. This technique for buying a home is a low money down technique that involves wrapping an owner financed mortgage around an existing mortgage, allowing an investor to purchase a home without closing costs, without a down payment, and with minimal out of pocket expenses. The investor then catches up the underlying mortgage payments, and continues to pay the existing mortgage until he is able to find a buyer for the home or rent it out.

We’re currently marketing for Lease Option buyers… or folks who are looking for a home but have poor credit, not enough saved for a 10 to 20% down payment on a conventional loan, but have enough money to make payments. These folks are perfect for homes that we have purchased in a ’subject to’ deal, because they are essentially ‘retail’ buyers, and they realize that they are not going to get as good of a deal as they would if they did not have a credit or financial problem holding them back.

By getting them into a home and putting them through a credit repair process, we’re able to help them get back on their feet!