Lease Option Exit Strategy - Posted by Bob

Posted by Randy on September 11, 2003 at 11:08:42:

Bob, if you offer the property at $240k ?Owner Will Finance? you should have a pretty good pool of buyers to choose from.

Depending on their credit and down payment you have a couple of choices: They have 10% down ($24k), you carry 10% ($24k) they get a new loan for $192k ($216k cash total at close) pay off the underlying 1st $199k and pocket the balance $17k.

They may just get a new mortgage or private note at 85%-90% of the $240 you carry the balance. If you?re doing this yourself, you will need an escrow company or attorney to close. I suggest an escrow company as they will do the title work, document fillings and all. You simply take the purchase agreement between your new buyer and you to the escrow company and say I want you to close this sale, I?m sure others will have additional suggestions.

Lease Option Exit Strategy - Posted by Bob

Posted by Bob on September 11, 2003 at 02:22:17:

I’m renting a house under a lease option. I’ve been in it for 10 months now and have not been able to find a lender to let me buy it. However during the process an appraisal was done and came back at $240k on my $199k contract. Wow! But still it does not look like I can get financing.

In any case I want out. So I just realized that if I can find a buyer at $240k I can carry 15% ($36k) and still get a little cash out. Carrying 15% should make finding a buyer easy, and the property has already appraised at the proposed selling price.

So the question is how do I do this? My seller is cooperative so I plan to start advertising. When I have a buyer how do I arrange a closing such that the buyer’s 85% down pays my seller and I get the note? I’m in in Washington state. Is this a double closing? How do I find an escrow agent to handle this? Do I need a lawyer? Do I tell the buyer that I am the owner or what?

What is the advice of the forum? Thanks in advance!

Bob (Seattle)