Help with the Detials on A Cooperative Assignment - Posted by Ryan Brown
Posted by Ryan Brown on January 23, 2002 at 19:00:48:
I sent a post card out and a lady replied to it. I gathered her infomation and presented a L/O. She liked what what I had to offer so we met at her house and after answering a few questions we settled on these terms.
2 Year Lease Option (1 year at a time)
$1350 Rent (Her payment is $1680, So she makes up the Difference)
Purchase Price is the Mortgage Balance at time of sale.
She pays the first Months rent after I find a T/B
The whole deal is valid Subject To me finding a T/B
The home is 5 years old, 1860 Sq.Ft, 4 Bed, 2 Bath, 2 Car Garadge, Fire Place. In a very nice area, good location, and good schools. Nothing needs done, in great condition. The comps for the home range from $150,000-$157,000 for cash.
To make a long story short I was alittle off on my comps. I had some other experienced investors check the value also, so I am not off. I based a Sandwich Lease off of the High Comp Price. I don’t want to be in the middle because I don’t feel like the Back End and Monthly Spread is worth the risk. Plus if something goes wrong I don’t have that much stashed back to cover those cost. I have plans for that $5000 Option Consideration.
I put some signs up a week ago, and had a good amount of calls. I have a guy right now who want in the home. He has $5,000 down for Option Consideration, he can afford the $1350 a Month Rent. And I had a Mortgage Broker Talk with him and he said that he could get him qualified in a year or 2. All the Broker wants to see is his W-2’s.
So I sent the T/B a Rental Application today via Priority Mail. I asked him for:
#1. The Rental Application Completley filled out.
#2. The Copies of the last 2 years W-2’s.
#3. A Money order for $25 for his Credit Check.
I am waiting for him to return all the information. If everything works out then I have a Qualified T/B who is ready to move into this Vacant Home (The homeowners had a New Home Built, They just want out of the Monthly payments.)
I just plan on telling the seller that I was a little off on what I thought I could sell it for, and because of that I can’t stay in the middle and garentee the manintence and payments. BUT I Can Still solve your problem. I have a buyer who is willing to give you top dollar and also pay you $1350 a month in rent. I have already collected his information and ran credit checks, and hooked him up with a local mortgage broker. The broker is going to help him get qualified for a mortgage to cash you out of this Monster and get it behind you.
I will handle all the paper work. Then once it is signed up I will assing the contract back to you. I keep the Option Consideration That I collected for my fee, and I solved your problem of having double house payments, and got you a higher sales price.
Claude How do I do a Cooperative Assignment? I think I know how and just want to make sure. Here is how i think it sould be done:
#1. Qualify the T/B.
#2. Talk to the Seller and Tell her I can’t stay in the middle but I do have a Qualified T/B. If she agrees that she feels comfortable then I go to step #3.
#3. Sign up a Lease Agreement with the T/B.
#4. Sign up a Option Agreement with the T/B.
#5. Collect the Option Consideration, and firt months rent.
#6. Assign the Lease & The Option Back to the Seller for a Dollar.
#7. Get a Release of Liability from the Sellers.
#8. We Tear up our orginal Sandwich Lease/Option.
Thats it. I collected the option consideration and I out Free.
Please let me know how you handle it.
Sincerly,
Ryan Brow