I have had a recent reminder of a hopeful Charlotte Home buyer that was swindled by an investor. I write this as a caution based on personal training and now after meeting a recent victim.
Several years ago I was purchasing foreclosures from auctions. I personally witnessed many scams. I also took many courses; I was disgusted by what was taught. The statistics show that the vast majority of "Lease Options" never were executed. This was taught as a huge win for the land lord. You receive a large deposit (to be applied towards the down payment "if" the buyer can get financing). You, the landlord, charge higher than market value rent and the additional money from the monthly payment "is applied towards the down payment when the home is purchased (rarely actually occurs). When the buyer does not get financing, the landlord also keeps all of this "extra" money! You, the landlord also are not responsible for the majority of the maintenance since since the "Lease Optioner" is responsible for "their" supposed home!
There is even another twist. The hopeful buyers trusts the initial home value from the investor. The buyers complied with all of their duties. At the end of the year the young couple tried to get financing. The home would not appraise for the sale price the investor required! They could not get financing since the home was not worth what the investor "told" them it was worth (our market has not changed over the past year). The buyers lost their deposit, their additional funds every month and the maintenance was for free. Who wins? The investor wins by taking advantage of the buyer.
This is dirty and I did not rent because I could not take advantage of people this way. This does not mean every investor is this dirty but please be very careful. There are many unscrupulous people in this world and always willing to prey on the innocent.
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