Turning Renters Into
Buyers
Owning a home is still the American dream for most people.
According to JP
Morgan Chase survey published last spring, 87% of Americans found
they dream about owning a home, 66% said they believe it is a good financial
investment and 75% said it’s crucial to raising a family. Another recent
survey, conducted by the National Association of REALTORS®, found that
homeownership was equally popular with renters, as reported in RealtorMag.com.
Even better, 68% of these renters said that now was a good time to buy a home.
What is one of the main reasons that people rent? It’s
impaired or no credit. One of a few really good things you can do for your
tenants, that is, once you’ve screened them with background checks, received
the money, made sure the checks cleared, etc…before they move in…is to help
them understand their credit.
My experience is renters that pay on time will almost
automatically increase their credit score over time. Most often, regardless of
the past, when someone pays their bills on time their situation will improve.
You can help jump start them with just a little help and encouragement. Many
times landlords can be seen like they’re looking down on their tenants as
customers instead of a fellow human being (and then some really are alieonic ~
alien).
Who hasn’t been down in their life? We all have ups and
downs. I avoid making a deal with someone who tells me they have never lost or
been down. They are usually not truthful. Most of us, if we live long enough
will have several ups and downs. Like NY Times Best Selling author, Harv Eker
says in Secrets of the Millionaire Mind,
“Every master was once a disaster.” The point is we’re all in this together
through the peaks and valleys.
Helping someone understand their credit can change their
life in a tremendous way. When I was a mortgage broker, I couldn’t tell you how
many clients came in with little, no
and/or bad credit. Most brokers and bankers turned them away (not so much
in the early 2000’s when almost anyone breathing could get a loan-and that’s another
story).
There had to be a way to help people that were credically
impaired. Many brokers and bankers do not want to give a lot of time to
difficult situations. Understandably so, as there is not usually very much
money involved for their efforts.
In all fairness, much of my motivation was directly
connected to my own experience. A while before I was a mortgage broker I had
gone through a not-so-nice-divorce.
I’m not so sure if there ever is a very-so-nice-divorce no matter what the
situation. Not to say anything too bad…and let’s just say my credit was shot…foreclosure-collections-etc…
A few years after my NSND (not-so-nice-divorce) I was remarried and
attempting to buy a house. That is when everything came out. Yes, everything
and the kitchen sink. I learned a heck of a lot about credit, i.e. my own. It
took me several months to get myself where I could get any kind of financing.
This was just before I became a mortgage broker. At the time
I was in the Insurance business. Once I became a mortgage broker I felt for those that had difficulties in
getting financed. Few mortgage brokers and bankers wanted to help. So I decided
to do just that.
We concentrated on helping people improve their credit and
particularly their credit score. We created a debt solution/repayment program.
We worked with a company out east that was formally involved with Consumer Credit Counseling. At that
time, their negotiations with
creditors, did not impair the client’s credit like so many of them did back
then.
Today there are all kinds of credit repair companies that have popped up everywhere you look. I
always look at their programs. Unfortunately many of them are giving out misinformation.
They are quick to take your money and not always much better on results than
you can do on your own. Most everything that can possibly be done to improve
your credit is easily done on your own.
This information can also help your tenants become good home
buyers. You, as a landlord/owner/seller can cash out completely. In many cases
when the tenant buys your house their payment is less than they were paying for
rent.
Sure, we all want to make money. And Real Estate has made
more millionaires and billionaires than most other vehicles. I am constantly
reminded that it is not-so-much a Real Estate business and is actually a people business. It’s not all about
money. Treat people like people, including your tenants, and always do the
right thing. I approach every deal with the expectation that everyone will walk
away smiling. It must be win/win/win.
Happy Investing,
John Lee
The Deal’ionaire
If you would like a "Gifted" copy of my book, "How to Improve Your Credit Score," send a request to :
theDealionaire@gmail.com
Be sure to check out my new book on Amazon :
http://www.amazon.com/Secrets-Dealionaire-Creating-Wealth-Small/dp/1500336467/ref=sr_1_1?s=books&ie=UTF8&qid=1417399339&sr=1-1&keywords=secrets+of+a+deal%27ionaire
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