Creating Future Income

Written By: Gail Foster

Summer’s here, seems like everybody’s on vacation and the real estate market is slow. Now is the perfect time to start building business for the future. I remember when I was a loan officer that there were certain times of the year that loan production dropped. Being a commission only employee made those times difficult, I’d look hard for a new loan program to promote or a new market to target with my advertising. The goal was to try to create year round income producing loan closings. I think we have an excellent opportunity right now to create consistent future income in real estate

I can only imagine how many loan pre-qualifications are done daily and the customer does not qualify. There can be a variety of reasons, it may be credit issues, time on the job, collections or financial issues. You’ve looked at hundreds maybe thousands of financial applications and you know that with a little work the customer will be able to purchase a home. So you give them the news, encourage them to get to work on the problem and invite them to come back in three, six or maybe even 12 months. Maybe they’ll give you a call in the future but maybe they won’t. Don’t let that customer hang up the phone or walk out the door, introduce them to rent –to-own!

With lots of property for sale, more and more sellers are looking at alternative options to cover their mortgage obligations. A simple rental is not always attractive for an owner, they worry about being a landlord. Will they have to evict or chase down rent payments? These thoughts are very unattractive and a bit scary for most homeowners. But when a seller chooses to rent-to-own the “tenant “ is actually the future owner!

The lender is an important part of the rent-to-own transaction. When an offer is made it is necessary for the lender to provide documentation similar to a mortgage commitment letter. In essence the seller will need to know what the prospective buyer will need to do in order to qualify for financing. Additionally, the buyer must commit to regular follow-up with the lender to track progress. Once the buyer is ready and qualifies for financing, the loan processing begins.

I hope your brain is doing the math, because mine is. Imagine being able to convert ten or twenty percent of your failed pre-qualifications to rent-to-own buyers! You will be creating consistent future business and loan closings. The process is neither demanding nor expensive. A few credit reports and follow up phone calls along with an update to the parties involved are all that’s required until the buyer is ready for financing. A small investment of time and sharing the opportunity are all that’s necessary to begin creating future business , future loan closings and future paydays! So grab a realtor and start sharing the opportunity!

About The Author

Gail Foster - As an active real estate industry professional for the past twelve years, Gail Foster is a proud licensed mortgage officer and a Realtor in the state of Maryland. If you would like to become a writer for NAMU®, please email us at:

Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.