A few lease option questions - Posted by Chad Lare

Real Estate Investing
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Posted by Chad Lare on July 14, 2003 at 14:11:51:

I am located in Zephyrhills, FL, which is near Tampa.

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A few lease option questions - Posted by Chad Lare

Posted by Chad Lare on July 13, 2003 at 21:01:00:

I have read the articles on this website and I have gone through Bill Bronchick’s lease option course. I think I have a pretty good understanding of the concepts, but I have a few questions.

  1. Using a performance mortgage gives me an insurable interest in the property, but what determines the amount that I can be insured for?

  2. A performance mortgage will also put me in a superior position to any new liens that are created during the lease term. If I foreclose, those liens would be wiped out, but what if I don’t foreclose and we go to closing? Would the seller be obligated to pay off any new liens?

  3. If I am the master tenant in a sandwich lease option, how much should I plan on paying in closing costs for doing a double closing with the seller and the tenant buyer?

  4. What should I do if the seller, or tenant buyer declares bankruptcy? What is the best way to plan for this situation?

  5. What if the property burns down? Bill Bronchick’s lease states that the lease will terminate, but what about the option? Whould the tenant/buyer be entitled to some kind of refund?

Thanks,

Chad Lare

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Re: A few lease option questions - Posted by Scott T.

Posted by Scott T. on July 14, 2003 at 13:05:40:

Chad,

I am starting to do lease options as well and would also love to have some of the professional investors answer your questions as I too have the same questions. By the way, where are you located??

Thanks,

Scott T.