Re: Lease Option Closing - Posted by Jim IL
Posted by Jim IL on December 07, 2000 at 18:34:50:
"1) I need to know if anyone has every closed a Lease Option deal and if so then, what procedures/steps did you take to insure a proper/successful closing? "
A: I have closed several, thankfully, and will close more as time goes by.
To insure a proper and quick closing, I took the “Bull by the horns” as they say.
I got in touch with my attny and had him set up everything.
I then kept on the phone with all parties involved almost daily to make sure everyone had everything they needed.
I talked to the lender for the buyers, the attny, the title company, and of course, the sellers, and my T/B’ers.
Basically, i made sure that no one could say, "we have to change the close date because we don’t have…"
I made sure all paperwork was in order, and checked with my attny to make sure everything was done, and done right.
"2)Where did the closing take place, a Title Company, Attorney’s office, etc.? "
A: I have closed them both at the title company and an attorney’s office.
But, at the attny’s office, there was a title company rep there doing the actual closing.
This was done by using “Law Title” , which is a title company here in Illinois owned and operated by local attny’s.
They do good work, and I recommend them highly.
“3)Did you do a double-closing with the seller and the tenant/buyer?”
A: Yes, when it was a sandwich L/O deal, there was really no oher way. Since I did not “assign” my L/O deal to the T/B’ers.
“4)Did you run into any problems being that you weren’t the actual owner of the property?”
A: ONCE, a lender for my T/B’er was not happy there was not title seasoning, and since the loan offered was a good rate for the T/B’er, my attny re-wrote the agreements with the approval of ALL parties involved so that my T/B’er bought directly from my seller, and the seller paid me a “Fee” listed on the hud 1 statement.
Basically, if you have never done one, get ahold of a good RE attny, tell them what you desire, and see how they react.
If they say, “No problem, let me see the agreements, and I’ll set up a close”, then go for it.
If they give you a blank stare, RUN to another attny.