Selling Lease option contracts? - Posted by Jturner


#1

Posted by LM on November 03, 1998 at 24:39:07:

To the best of my knowledge, what you are talking about is basically the assignment of a lease / option for exchange of a fee ($10,000 for example).

#1. You must have an assignment clause within your lease / option agreement allowing you to transfer your rights in the Lease / Option / Property.

#2. You should have a document drawn up, or obtain an assignment document. (There may be one available on Bill Bronchick’s site (Legal Wiz.com).

#3. Make sure that your seller and your buyer release you from any liability pertaining to the property, the transaction, etc. This is done by way of inserting a release clause.

Hope I haven’t added more cob webbs to the one’s already there! :slight_smile:

Regards,
LM


#2

Selling Lease option contracts? - Posted by Jturner

Posted by Jturner on November 02, 1998 at 22:22:44:

Could someone please explain to me how the procedure of selling a lease option contract to another individual works. I am just a little confused…

Thank You
Jason.


#3

Re: Selling Lease option contracts? - Posted by Bud Branstetter

Posted by Bud Branstetter on November 04, 1998 at 13:12:31:

One approach to L/O is assigning the contract to the prospective tenant buyer. If you want to get in and get out quickly and have a prospective tenant buyer you can let him beat you down all the way to assigning him your option for as much or as little as you agree on. No more worries or hassles then. You can even create a note and have him make payments to you.

To sell to someone else after the new tenant buyer occupies the place may be more difficult. Maybe only because I’ve never tried to do it. You have allready collected the option money and all you are selling is the positive cash flow and the possible future deal. If there is little equity or the buyer has a small amount into the property there is more risk for the potential buyer of your contracts.