Posted by Jim C on January 16, 2001 at 11:54:31:
I am by no means an expert. I am very new to this and have yet to complete my first deal, but couldn’t you just tell the T/B that the owner was desperate and that he gave the house to you for a really great deal? I mean they should understand that you are an investor and need to make a profit.
Maybe you could make it sound like the option fee that they paid was a benefit to them, by reducing the amount owed on the property.
Or just tell them that you need to collect a large option fee because it helps the T/B feel like they are going to eventually purchase the house and that helps the T/B to take better care of the house.
And maybe explain to them that if they decided to not exercise their option, then you would have wasted your time because there wouldn’t be any profit in the end.
I would tell them that they would be paying all of it eventually, but this way you are guarenteed a T/B that is serious about the purchase of the property and one that will take care of it like their own. And this way, at least you don’t end up wasting your time with a T/B that had no intentions of buying the property in the first place.
Again, I have no experience with this, but I just figured I’d throw in a few ideas. If you have any input on my response, let me know. That way I can learn a little about it.
I hoped this helped a bit.
and GOOD LUCK!!!