Financing Stratagies for Lease Options???? - Posted by Keith


#1

Posted by Bronchick on December 22, 1998 at 15:03:45:

How about telling the owner you will give him option consideration after you find a subtenant. Or, how about a 30 day note?


#2

Financing Stratagies for Lease Options??? - Posted by Keith

Posted by Keith on December 22, 1998 at 11:58:08:

Hello:

I am closing on some lease options and finding myself
low on cash for the option consideration money (The holidays hit the pocketbook hard). Does anyone have any creative financing stratagies that will help me???

Please let me know ASAP!

Thank you and Merry X-Mas!

Keith


#3

Re: Financing Stratagies for Lease Options??? - Posted by Frank

Posted by Frank on December 22, 1998 at 18:15:01:

I don’t know the arrangements you made to enter the lease options but just to throw some ideas at you.

  1. If you already have an option then why don’t you just sell it to a new buyer. The new buyer pays full price and there you will get the money to buy the property outright with your original contract. You use a simultaneous closing. The seller in your option agreement goes to the closing table and your new buyer pays for all downn payments, closing costs, and prepaids. I assume you bought it at a price then you sell to your new buyer at your price. The transaction is between the seller and your new buyer who pay all the costs at closing. Your contract is in the middle and when the transaction closes you get the difference between the original sales price and your new sales price. You just sit back bringing the seller and buyer to closing and get a check. It is a simultaneous close.

  2. Ask your new optionor, the person whos paying the option, to pay option consideration up front to you, the amount you need for your option. Your original agreement must allow you to assign or sublet. You pay the optionee, the person who received your option consideration, the option consideration from your new optionor, the person who paid you the option consideration. Then sublet at your new option price. Make your rental payments to your new leasee slightly higher than what you are paying for a positive cash flow. This is not a joke!

Again it depends on your orignal agreement and how its structured.

Good luck