Posted by WAREIA on June 17, 2007 at 18:26:28:
Executory Contracts, specifically Lease Options, as of Sept 1, 2007 are illegal in Texas. There are many posts on this on CRE that you can look up the actual law. I’m not an expert on “Executory Contracts” but what I do know is if you are granting an option or a seller assisted contract to buy then you must put the tenant on title and that is not a good thing.
Lease Options in Texas - Posted by Dave
Posted by Dave on December 23, 2005 at 16:22:30:
I live in Fort Worth. I have the opportunity to buy a home on Lease Option and turn around and sell a property on Lease option. I have tried to call a lawyer that I know but he is out for the Holiday. I am not seeking legal advice here I just want to know how some of you are doing it?
I was thinking about the Land Trust. Instead of lease optioning the home I could Lease Option the Benificial interest and do the same thing on the sell side.
Please post comments:
Re: Lease Options in Texas - Posted by David Alexander
Posted by David Alexander on December 26, 2005 at 01:56:38:
LO’s are about dead in Texas…
The laws are being written against them…
Not to mention… that in Texas when you don’t own the property as a personal residence… the taxes are much higher than normal… making it a difficult place to buy and hold anything not bought at 40 - 50 cents on the dollar with very minimal repairs…
I’ll actually be doing a teleseminar in the coming weeks are so on how to deal with that…
David Alexander
Re: Lease Options in Texas - Posted by Joe Kaiser
Posted by Joe Kaiser on December 24, 2005 at 24:08:21:
Re: Lease Options in Texas - Posted by WAREIA
Posted by WAREIA on December 27, 2005 at 11:14:23:
Lease Options and Purchases are NOT DEAD in Texas.
They are very much alive and well, you just have to know how do them in order not to create what Texas is calling an Executory Contract.
Since the Law has been passed I and many other Investors have done several deals in Texas without a hitch and in full compliance with the law and without tax increases.
Just one month ago hundreds of Investors got together in DFW to learn how to comply and prosper under the New Law.
You don’t have to purchase at 40 to 50 cents on the dollar or even 80 or 90 to make money with Lease Options or other forms of Subject-to in Texas.
Like you would know… - Posted by AdPolice
Posted by AdPolice on December 27, 2005 at 07:51:20:
Hey David, good to see you here promoting yourself on the board. lol
What a loser.
Re: Lease Options in Texas (Joke) - Posted by Dave
Posted by Dave on December 24, 2005 at 07:52:41:
Is this suppose to be a joke. well if it is you got me.
Go figure!
thanks for the non help
Re: Lease Options in Texas - Posted by Kevin
Posted by Kevin on January 02, 2006 at 18:19:30:
What is the difference btw the old way of doing L/O’s and the new way in Texas? Does anyone have a new, updated Texas lease option contract? Does the new law affect lease options and lease purchases differently?
Thanks!
Kevin
They are Dead In Texas… - Posted by David Alexander
Posted by David Alexander on December 28, 2005 at 12:08:12:
as far as I’m concerned…
The powers at be don’t want them
You can get into a new house for about the same price that you can get into a rental…
This makes it hard to cashflow rentals in texas because they are nonhomesteaded property… the reason you have to buy at very discounted prices…
Landlords that have had property have reduced rent to get their properties occupied
Everyone and their dog is trying to do them… when the competition zigs… you must zag… You should be selling what the market wants not what’s in your
bucket
The public has figured out that they are just renting… That a Lease option is not buying… It’s not owner financing…
Re: Lease Options in Texas - Posted by Larry Tx
Posted by @yahoo.com"]Larry Tx on December 27, 2005 at 23:06:16:
The way the law is writen the Judge can look past anything you have written and determine your ‘intent,’ and declare your contract in violtion of the law. Damages are trebel, and may violate “fair trade practices .” You can actually do jail time, even if you renter excerises his option. “Just say no.” You can identify the Pilgrems by the arrows in their backs.
Homestead lease options in Teaxas are dead for now.
Re: Lease Options in Texas (Joke) - Posted by Joe Kaiser
Posted by Joe Kaiser on December 24, 2005 at 09:51:40:
Did I mention, too many hoops?
Things quickly break down when you stray from the tried and true. Not
saying don’t be creative, but doing so to solve a problem that’s already
been rehashed and solved isn’t likely to be of much good.
A strategy where the alignment of the planets is required in order for it
to work isn’t such a good strategy.
Joe
Re: Lease Options in Texas - Posted by WAREIA
Posted by WAREIA on January 03, 2006 at 11:14:09:
BTW an LO is the Option to Purchase and an LP is the Obligation to purchase. In either case LOs and LPs are both Executory Contracts under the law in Texas.
Yes there is a way but I’m not allowed to share it with you on this site. Regardless of what the so-called Gurus are telling you, yes there is another and better way and always has.
I have personally done deals in Texas, before and after the Law took affect with no problem.
Re: Lease Options in Texas - Posted by WAREIA
Posted by WAREIA on January 03, 2006 at 11:13:02:
BTW and LO is the Option to Purchase and an LP is the Obligation to purchase. In either case LOs and LPs are both Executory Contracts under the law in Texas.
Yes there is a way but I’m not allowed to share it with you on this site. Regardless of what the so-called Gurus are telling you, yes there is another and better way and always has.
I have personally done deals in Texas, before and after the Law took affect with no problem.
Re: They are Dead In Texas… - Posted by WAREIA
Posted by WAREIA on March 09, 2007 at 10:50:59:
Although Arizona hasn’t (YET) outlawed Lease Options, they do have on the books some interesting and dangerous legislation to discourage investors from participating in such schemes.
Based on my conversations with Legislators and RE Attorneys in Texas, the new Texas legislation, as of Sept 06, has some of it’s foundations in the Arizona Legislation. The AZ legislation simply states that a Leasee MAY have an Equitable Interest in the Property IF any one of five things exsist in the contract/s.
If any one of these five things exsist it means that… One; you can’t evict them, you must foreclose, Two; your property is exposed to all of your Tenants legal messes (Bankruptcies, Divorce, etc.) and actions including the ability for a Judgement Creditor to place a lien on your property, which is now considered your Leasees property.
I actually spoke with an Eviction Judge in AZ that before he was the Judge, helped sponsor Arizonas Lease Option Legislation. He was consulted on the Legislation that passed in Texas last Sept.
Here are the five things, that if ANY one of them exsists, MAY give a possible claim of equity in the property to the Leasee.
It is also interesting to know that AZ Legislation is being used all over the country in the form of Case Precedent against Owners and Landlords when attempting to evict non-paying tenants to forestall eviction.
I am following a case rihgt now in another State with no specific LO legislation on the books but where they are using AZ legislation to keep the tenant from being evicted because a claim of equity exsists. The Eviction Judge had dismissed the original Eviction while a court of equity heard the claim. The court of equity (in small claims court) just ruled that YES, a claim does exsist because of the deposit, rent credit and pre-determined purchase price (a delayed sale). It has now gone back to the Owner and his Attorney for them to take a different action.
Answers:
Yes the Laws are changing all over the country. For example. The city of Cincinatti has passed what is called and Anti-Preditory Lease Option Law.
You could always get in to a new house for less than renting regardless of your location.
That is true. But it is not true that it makes it hard to cash flow. You just need to know how to structure your deal to “Add Value” enough to get much better than Fair Market Rents.
Un-informed and un-educated Investors and Landlord have reduced “rents”.
Trying YES. Zag NO. Just use the exsisting laws on the books to do safe and legal transactions. The “market” has no idea what they want except affordable housing and Value. There are Ethical, Legal and Affordable ways to accomplish this and give them what they want.
Thats exactly the point to this legislation. The Tenants AREN’T “just renting”. A Lease Option is considered by Texas, AZ, UT, OH and many others to be exactly what it is… A Delayed or Diguised Sale. It IS Owner Financing and there in is the problem.
Disclaimer:
As usual, I suspect this post won’t stay up for long because it is not information the Gurus who sell Lease Option Courses want you to see. I have shared the solution many times here and it is continually deleted so I won’t do that any more. I do at least two deals per month in Texas and no, I’m not going to share anymore because when I do, the ones I share it with just mess it up and don’t follow directions, probably because it’s too simple and how can something be that simple?
Re: Lease Options in Texas - Posted by WAREIA
Posted by WAREIA on December 27, 2005 at 23:13:15:
Yes, Homestead Lease Options are dead but that’s not what was said in an earlier post. It said Lease Options. And for the most part your correct.
No arrows in my hat, infact the natives aren’t even restless.
Re: Lease Options in Texas - Posted by gary garza
Posted by gary garza on June 17, 2007 at 07:19:53:
would you please share this with me. I currently have a couple of properties on a lease option. i need to know if i am legal!
Re: Lease Options in Texas - Posted by md
Posted by md on March 08, 2007 at 24:07:24:
care to share this info with a fellow texan?