I’m sure many others are doing this, but would appreciate any feedback on the positives and negatives of this strategy. I buy mostly subject to and work a good amount of short sales as well. However, I’m walking away from a good number of leads that do not fit into either of these strategies. I have buyers who are looking and sellers who do not want to lose their home to foreclosure, not ready for a short sale, and not enough equity for a subject to, or do not want to sign over the deed. I can find them a Tenant Buyer and make money without hanging around.
My strategy would be to control the property with an option, find a tenant buyer, close on the property, have them purchase a home warranty to eleviate repair calls, enroll them into a credit repair program or work directly with my lender, collect first month’s payment, collect option payment, and sign everything back over to the owner. Payments are collected by a loan processor so the owner is not accepting payments and payment history get sent to credit bureas. I receive the Option Fee and back away. The owner gets a tenant buyer and still controls the house. The purchase price is adjusted to cover my fee and higher if the market will allow giving the owner something on the backend.