Lease Option question, Need Help! - Posted by Brent

Posted by Clair-MO on August 19, 2003 at 11:45:45:

This is normal time frame.

Lease Option question, Need Help! - Posted by Brent

Posted by Brent on August 17, 2003 at 16:52:45:

I am new to L/O. Have just done buy, hold, rent in the past. I have a few questions.

If I L/O a property and then L/O it to someone else and then they exercise their option how is closing done with the Seller, Me, and Buyer? Let’s assume that I am owed money by the buyer because my sales price is higher than what I optioned it for from original owner.

If I L/O a duplex and then L/O it to someone else, how are rents handled? Also, let’s say that the person I L/O it from is planning on still living in one side. Would he pay rent to the third party, the thrid party would pay me, and then I would pay the original owner?

I have a L/O contract that I plan to use, but I don’t like the wording that allows me to get another option from someone else. What should it say?

I’m ready to do this, but am having some questions. Any help would be appreciated.

Thanks,
Brent

Re: Lease Option question, Need Help! - Posted by Brent_IL

Posted by Brent_IL on August 17, 2003 at 19:27:58:

Whatever you decide to do, get a RE attorney to assist. Get the seller to execute all of the documents that you will need to transfer title and deposit them into escrow. If you use a trust, the lawyer can be the trustee for one deal. This stuff isn’t as cut and dry as you might believe.

Re: Lease Option question, Need Help! - Posted by Clair-MO

Posted by Clair-MO on August 17, 2003 at 17:31:40:

Brent, I have done several deals as you described. 1. The process of closing is simply wait 12 months to 24 months then do a double closing. Double closing means that the tenant-buyer will pay you your price at closing and in turn you will pay off the owner his asking price. Normallly it takes 30 days for receive the title from the original owner to you and then after you receive it you can signed it over to the lender and the tenant-buyer.

  1. You will be paid by the tenant-buyer the rents then you will pay the original owner if you feel it better to have a third party involved then the third party will pay the rents to the original owner and the proceeds left will be sent to you by the third party.

  2. I am a little bit confused what you are trying to say so I won’t try to provide an answer to it.

Re: Lease Option question, Need Help! - Posted by k(fl)

Posted by k(fl) on August 18, 2003 at 19:51:59:

you mentioned that it takes about 30 days to get the title from the seller.this does not raise any eyebrows to the lender or buyer or is this normal time frame?