What is a L/O Note?.. - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 06, 2003 at 18:30:00:
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,