I just recently bought Wendy Patton’s lease option course off of eBay. One thing that I have a question about that I can’t find the answer to is running credit reports. I realize that because you are attaining tenant buyers, you do need to run a credit report to see what you’re working with.
Question for anyone who has ever set up a deal:
How do I as an individual without a real estate license, or a company run someone’s credit. Is it legal for me to run someone’s credit? How do I work this angle of the deal? Any feedback (especially detailed feedback) would be tremendously appreciated.
I use www.tenantcredit.com…you will need to establish an account. To do this, they are going to verify. They will want copies of proof that you own the property and proof that you are writing a contract (they will give you a list of items that they need…).
It is not illegal to run legitimate credit reports, but you can’t run them on yourself or your family (they will give you all of the rules). There are also rules about running credit, about maintaining credit records and about storing the privacy information.
The cost is relatively low (like $12-20 per report).
Thank you so much for your quick response. My question to you is, if you are doing a lease option, how can you prove that you own the property. Technically, I may not get the deed. I will have a contract but not the deed. I think I am missing something huge am I? Just a disclaimer, I am still in the begining stages. Thanks again.
You needn’t be the owner to pull a credit report on a prospective tenant. You will need, however, that person’s permission to do so. And that generally comes in the form of a lease or rental application which, when signed, states that you have the right to verify the information and pull a credit report.
Thanks for all responses, the tenant permission makes alot of sense. Now its all coming together. ;D
As far as the question regarding Wendy’s course, I am only a 1/4 of the way through it. I have about 8 Cds to listen too, I received all contracts (which are very comprehensive), etc. I do like it so far especially the CD where you listen in on phone calls that she has made in response to her classified ads. But just keep in mind I don’t have much to compare her course to as this is the only course I have purchased and as mentioned before, I am only a 1/4 of the way through. I also signed up for her teleseminar as well where I and the other callers were able to ask questions afterwards (which were answered).