Lease Option Question - Posted by Jim LaVerdi

Posted by chris_wa on December 18, 1999 at 24:22:59:

i think i can help answer a few quetions.

first. you can “set” all the numbers you want…but essentially you are making on offer on a property and in the end…the seller will make the call. so to answer your question, “yes” the seller will have a sale. you are in no means a position to dictate terms to anyone.

second…title doesnt transfer till the option is exercised. and from what i understand…with you in a sandwich position, you will never have your mits on the title in the first place. also, you won’t have ultimate responsibility for closing costs! :wink:
last…take your chances with using your money that will eventually be reimbursed from the option consideration that you get from your tenant buyer. yeah you could offer a premium to get their attention. but why? if they are truly motivated, that wont be a major point of contention, will it? read joe kaisers book. the first section talks about how he wanted to kick himself for all the deals he let ride the “same way” you just described. in fact he went on to say how he had wished so many times he would have only offered a buck for consideration. ask the question. the worst you can get is a “no” response. and dont “assume” their needs. PERIOD.

hope this is helpful…i’m in the same newbie state here as well with this part of the biz…

welcome comments

ps-thanks joe for the absolutely stellar material…i can’t believe i learned a real life technique in the first sentence of the darn introduction! POWERFUL!!!

Lease Option Question - Posted by Jim LaVerdi

Posted by Jim LaVerdi on December 17, 1999 at 19:26:22:

I am rather new at this and would like some advise. I have a couple of very possible deals in the works. My question is this…If I am entering into a Lease Option agreement with the seller do I set all of the numbers,such as Consideration (or whatever you want to call it) and monthly rent, and strike price etc, or do I let the seller be part of that determination? Also when a lease option agreement is made, does the optionee take title to the property or will that happen when the option is excercised? I know…a lot of you guys are saying to yourselves “Why put anything at all down?” I say that you may be able to find deals that will work with nothing at all down but you will probably have much more success by offering a little bit up front (don’t you think?) and besides…It;'s not my money anyway…It’s my sub-lease tenants money,and it’s only a portion of it, some will actually go to me because I ask for more than I offer the seller for consideration (or whatever you call it) Give me the word I should be using here too.


Jim LaVerdi