Real Estate Investor · Northfield, MA · Member since 2008 · 101 posts · 0 votes
When leasing a property with the option to buy to a tenant/buyer, you can put the TB on the lease and hold it in escrow so the TB can refinance and not have to come up with a downpayment as in a conventional mortgage. How long does the TB need to be on the deed before they can refinance?
As far as finding a lender who actually treats a TB excercising their option to buy as a refi, I don't know of anyone who'll still/can do that these days.
Does anyone else agree with this? Is it out of date information? We're new to this but it seemed like a good strategy. (Not to doubt you Dan, I'm just not ready to give up hope yet :)
I believe the idea of holding the deed in escrow would fall apart when the lender got a preliminary title report and the person on the deed didn't show up as the owner.
donrock