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  • Digg it UP - Low Interest Rates - Where Are All The Tenant-Buyers?

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    but it has not been a cake-walk.

    With these exceptionally low interest rates and extremely easy qualification criteria for getting mortgages more renters are becoming

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    Over the last few years we have seen historically low interest rates on mortgages and it has been easier for people to get loans. What has this meant to real estate investors that buy houses by agreeing to make payments on existing mortgages and then reselling the properties on a rent-to-own or lease-option? Well, it's had its pluses and minuses.

    First, real estate investors have been able to get exceptionally good interest rates when buying houses and agreeing to make payments on existing mortgages (called buying houses "subject to" the existing financing). With owner occupant rates in the high 4% to low 6% range, taking over fixed interest rate financing can be very attractive, but it has not been a cake-walk.

    With these exceptionally low interest rates and extremely easy qualification criteria for getting mortgages more renters are becoming

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    s that buy houses by agreeing to make payments on existing mortgages and then reselling the properties on a rent-to-own or lease-option? Well, it's had its pluses and minuses.

    First, real estate investors have been able to get exceptionally good interest rates when buying houses and agreeing to make payments on existing mortgages (called buying houses "subject to" the existing financing). With owner occupant rates in the high 4% to low 6% range, taking over fixed interest rate financing can be very attractive, but it has not been a cake-walk.

    With these exceptionally low interest rates and extremely easy qualification criteria for getting mortgages more renters are becoming

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    First, real estate investors have been able to get exceptionally good interest rates when buying houses and agreeing to make payments on existing mortgages (called buying houses "subject to" the existing financing). With owner occupant rates in the high 4% to low 6% range, taking over fixed interest rate financing can be very attractive, but it has not been a cake-walk.

    With these exceptionally low interest rates and extremely easy qualification criteria for getting mortgages more renters are becoming

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    uying houses "subject to" the existing financing). With owner occupant rates in the high 4% to low 6% range, taking over fixed interest rate financing can be very attractive, but it has not been a cake-walk.

    With these exceptionally low interest rates and extremely easy qualification criteria for getting mortgages more renters are becoming

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    but it has not been a cake-walk.

    With these exceptionally low interest rates and extremely easy qualification criteria for getting mortgages more renters are becoming home owners than ever before.

    A typically exit strategy for real estate investors who buy houses "subject to" is to resell the properties to a tenant who will, within a year or two usually, buy the house by getting their own mortgage. These tenant buyers are typically those that are on the cusp of qualifying for a mortgage or who want to improve their credit and/or job history to get a better interest rate. With rates at 40 year lows, they are simply opting to buy outright instead of doing a rent-to-own reducing the demand for rent-to-own properties and rentals simultaneously.

    Does this mean that this strategy is out-dated or no longer works? On the contrary, the buy "subje

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