Posted by ~Steve~ on April 06, 2003 at 21:38:41:
Michael- Thank you for your responce.
After searching the archives on past PMM posts, light bulbs started going off. I have six months with this property before I have to, or not, exercise my option. This is plenty of time to structure something like this and possibly come out ahead.
Thx
~Steve~
L/O note for sale - Posted by ~Steve~
Posted by ~Steve~ on April 05, 2003 at 19:55:36:
Hello-
I am 6 months into a 1 year l/o to purchase a nice property. I currently have a renter in place. I get $250 month credit to the purchase price and after 1 year will have totaled 3K.
I can, but don’t realy want to come up with the difference to purchase the property. So, I am thinking of selling the paper possibly at a discount to make a little cash. The verbage in the l/o contract allows me to sell my option.
Besides the possibility of surprizing the seller, is there any other things I should watch out for. Does this note seem worthy to even consider selling.
Thanks for you comments
~Steve~
Re: L/O note for sale - Posted by AL
Posted by AL on July 17, 2003 at 21:50:58:
About Your Property Online
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What is a L/O Note?.. - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 06, 2003 at 18:30:00:
Steve:
Your confusing a Lease option with a Note…
If you are currently involved as a Tenant buyer leasing a property with an option to buy it from the existing property owner then you and that existing owner have a landlord / Tenancy relationship that exists. You don’t OWN the property, yet.
Now, YES you can attempt to sell your “option” (as long as its assignable or saleable?)BUT that is not a “NOTE” instrument. That is simply the sale of YOUR rights under the existing option agreement that you have as the tennant buyer that you would be attempting to sell or assign to another party.
Now, IF there exists a lot of equity in the property, you might be able to approach the property seller and see whether they would prefer to be cashed out SOONER rather than later? If they are open to this possibility then it may be feasible for you to advertise the property for sale with OWNER FINANCED terms of sale, where either YOU or the existing owners would agree to SELL the property to the prospective buyer and to also financed them by taking back a PMM- purchase money mortgage & Note.
This PMM if structured correctly could conceivably be then sold and converted into a lump sum cash payout, enabling you from this lump sum of cash to pay off the existing sellers what you owe them and earn a profit as well.
To your success,
Michael Morrongiello