Posted by scott on December 27, 2000 at 04:03:30:
How can your tenant buyer exercise their option with you before you actually own the property? Won’t the title report show that you don’t own the property, and you would not be able to convey a clear title for a property that isn’t yours? I may be way off base - please explain how this would work.
Thanks, Scott
First Deal… should I be a little nervous?? - Posted by Charity
Posted by Charity on December 26, 2000 at 09:19:00:
Well, I am signing my very first “deal” this Saturday. A L/O from a very motivated couple. Pretty house, only 3 yrs old, great n’hood and will have a 12 month L/O with 2 years renewable at my option. Monthly payments are $1,000 and I will L/P to my T/B for $1300. I have several people lining up for a home and cannot find the homes fast enough.
However, with this being my first deal, I am so nervous! I have been an agent for 5 years, but this is so different than what I was trained to do. I am so scared I will forget a stipulation or a piece of the contract or that the T/B won’t pay… Is this normal?
On that topic, what happens if the T/B doesn’t pay for some reason? Do I evict them or does the owner have to?
Charity
Re: First Deal… should I be a little nervous?? - Posted by Cork Horner
Posted by Cork Horner on December 26, 2000 at 10:54:21:
hey John Boy,I love your clarity and adeptness at explaining these mighty issues…;-] It must be the Chicago cold and wind keeping all your circuits working so acutely… Just kidding amigo as I am an escaped Minnesotan living in San Diego.
Re: First Deal… should I be a little nervous?? - Posted by JohnBoy
Posted by JohnBoy on December 26, 2000 at 09:40:44:
YOU would evict them. YOU are the Landlord to your tenant/buyer. YOU have a contract with the owner that allows you the right to sublease. YOU have an option with the owner to buy the property and you can give an option to someone else to buy from you at a higher price. When your tenant/buyer exercises their option with you, you then exercise your option with the owner and use your tenant/buyer’s money at closing to pay off your option price to the owner and you pocket the difference.
Re: First Deal… should I be a little nervous?? - Posted by JohnBoy
Posted by JohnBoy on December 26, 2000 at 14:44:41:
That’s it! Rub it in!!! LOL