The down and dirty pro/con list
Renting or lending to those who’ve filed bankruptcy might seem like a stupid idea. We agree it’s a risk but it might also be a great niche market.
While filings are down since the rebound and gaining access to credit to buy a place is easier, there seems to be a great deal of people unable to rent at large corporate apartment complexes or they lack the earnest money to purchase a home.
It might just be worth reconsidering your credit requirements and asking for supplemental information during the application process.
Let’s break it down:
|· No debt = more cash income||· History of default|
|· Desire to rebuild credit; might be more motivated to pay rent||· Extremely low credit|
|· Unable to purchase or fear of purchasing again; chance to help community rebuild||· Creates a standard that might open you to discrimination claims|
|· Verifiable and upfront knowledge; remember a tenant can have a great credit score and still be buried in debt||· Pushes aside most relied on information in making decision to rent (overlooking credit)|
|· Interesting niche market||· Could be more likely to walk away again because they no longer fear “the system”|
While this is by no means an exhaustive list — it is designed to get you thinking. With the recent recession impacting so many you’ve probably seen an increase in applicants with credit blemishes, lost homes and bankruptcies… is this type of situation the new normal?
Deciding whether ‘to rent or not rent’ to those with bankruptcy history is important because it will impact your business. What’s more important is your willingness to adapt your business strategy to meet the needs of the market.
ICOR isn’t advising you either way — but we will remind you no matter what you decide it is paramount you apply that standard equally, for every applicant and without fail or concessions.
To learn more about how bankruptcy impacts investor join us at the ICOR’s July meeting.
July Meeting Agenda & Logistics:
6:00-7:00pm: The Investor Lab — Join us for one or all of the following:
Food Served from 6:00-7:00pm
- Workshop Troubleshooting Forum
- "Hot Seat" featuring an expert in deal finding, marketing, financing
- Team & Resource Building
- Haves & Wants and Sharing Success
7:00-8:30pm: Main Meeting — Buying Property in Bankruptcy, Tenants in BK & BK and Seller Financing
8:30pm: Continued Open Networking
Tuesday, July 7th
Wednesday, July 8th
Denver Monthly Meeting – Buying Property in Bankruptcy, Tenants in BK & BK and Seller Financing
(Click For More Information and To Register)
Thursday, July 9th
Northern Colorado Monthly Meeting – Buying Property in Bankruptcy, Tenants in BK & BK and Seller Financing