A Few Lease Option Questions...... - Posted by Dave

Posted by Lori Samson on June 05, 2000 at 01:16:19:

Don’t be afraid to ask questions here! This is the place to ask! First, you should try to talk to the seller and make your negotiations in conversation form not an intent if possible. The only protocol is what works! If it doesn’t work who gives a hoot what others say you should do. I talk to my sellers and find out what their needs are and that gives me clues to how I will make the offer and what the terms will be.
Second, It is very scary at first! I am a woman in a male dominated profession and I had (Male) sellers that didn’t take me serious until I started making the offer and they found I could hold my own and usually knew more then they did! The place to start… is to just start. Make mistakes and grow. We have all been there! Bill Bronchick, Ron LaGrand, Claude Diamond, Joe Kieser and myself have all sat at the starting gate and felt the intimidation of the ones who knew more than us! You just have to have the courage to try!
No one was born writing courses and teaching seminars! We all had to learn. SOooooo, get out there and learn. Study everything you can in your field of interest to minimize your risks and make the fear stand at bay!
Best of luck-let us know how your deal goes! Lori

A Few Lease Option Questions… - Posted by Dave

Posted by Dave on June 04, 2000 at 14:27:19:

Hi all and thanks for the great site.

I am in the process of getting my first deal done and have a few questions regarding L/O’s. 1. What is the proper way to present a deal to a seller? Do I need to give him a letter of intent? and then fill out the L/O agreement? I guess i’m asking what is the protocol that would be proper.This is scary because it is new territory and I don’t want to mess up too badly.2.Is there an actual closing with a L/O to get control of the property or is it only when you excercise your option?3. I recently looked a home where there were about 10 other prospective buyers/ investors looking at it as well. How do you get time to speak with the owner? do you leave a bid with your terms and hope for a call back? Needless to say I became so intimidated that I left without doing anything! I apologize if these questions are stupid. Would appreciate any help

Thank you, David

Re: A Few Lease Option Questions… - Posted by Bud Branstetter

Posted by Bud Branstetter on June 05, 2000 at 14:02:33:

I had to get into a bidding war against others. After verbally discussing that I can solve their problem and get a feel for what they are willing to do I ask if they are ready to write it up.

I prefer a purchase contract it will spell out the terms of the ultimate sale and act as an option to tie them up. Then I will get the paperwork typed up. I usually ask for them to place it in a land trust and do a performance mortgage. The next is to sign the documents and arrange for a key. The actual closing will be down the line when the new T/B refi’s to do the purchase.