This website is an answer from heave for investors who do Lease Options. If you read the 4 part report on Lease Options (YES! I know that I have to post Part 5 but the last 7 days have been a whirl so it is coming in the next few days) you would know that a large number of people doing Lease Option or Rent To Own deals make enough money – they have credit issues that stop them from getting a house in their name by using a traditional mortgage.

A large number of lenders would count copies of cancelled checks for the 12 month duration of lease as a payment history and can and do qualify your lease option folks to get a traditional mortgage.

But it is a pain to do all that and especially if some months they paid you cash or some months they give you a money order. Also even if they paid you 12 months on time – but that will still not help their credit in anyway and they still getting a crappy interest rate. And even if you really don’t care about all that – think about this – if you lease option buyers have crappy credit the lender who is giving them the mortgage may refuse to give the minimum down payment possible which will eat your profits.

Example is I am flipping a house that I had for 12 months for $100,000 – that is the price we agreed up in our Lease Option agreement. Their credit, even though they paid on time is still shaky. We call our trustworthy loan officer (are there any in Michigan??? J Hey I kid the mortgage people) and let them do their mortgage voodoo.

They call back and say oops – because of their credit the prospective homebuyer has to put down 20% down. Well they don’t have that. And if you agree to it – then you just sold your lovely house for $80,000 – leaving $20,000 on the table.

Bad deal.

On the other hand, somehow if their credit score went up in the 12 / 18 months they lived in my house now I can qualify them for the minimum down payment or even no money down mortgage and everybody is happy:

They new homeowner gets a great rate and no money out of their pocket. I get to get the biggest check possible.

Rent Reporters actually solved this problem. It provides a service that verifies monthly rent payments with the landlord and provides that data to the credit bureaus to be added to your credit report.

There have been other services like in the past but none with the online presence that this firm is trying to build.

You can read more information about them here : Rent Reporters