Should I Iget this signed now or should I wait? - Posted by Jim LaVerdi

Posted by Brandi_TX on June 07, 2000 at 01:33:19:

Wouldn’t you want the seller to pay the Oct 1 payment too since he was there all of Sept? You know, that whole “arrearage thang”. :slight_smile:

Should I Iget this signed now or should I wait? - Posted by Jim LaVerdi

Posted by Jim LaVerdi on June 05, 2000 at 21:02:34:

Seller calls me, says he just built this beautiful house and then gets a notice that he is getting transferred overseas (Military Assignment). He knows that he has no equity and wants to get rid of the house. He does not want to list it because #1 No Equity and no cash to pay commissions #2. If sold he wants to remain in the house until the transfer in October.

He is interested in my offers that I made him verbally. I am scheduled to meet with him this weekend to discuss my offers in person. Should I, or should I say could I get this deal signed up today, but not take possession or make any payments till Oct? I would like to get it under contract now but not be responsible for payments immediately. This deal seems to point in that direction. I know that I can get a good down payment on this from a buyer and in addition offer up some owner financing on it for a nice monthly cash flow. Where I live I know 90 days is way plenty of time to do this, and 90 days of no payments on a loan taken subject to has to be a great way to get a first deal! (Or should I offer seller a Lease Option?)

Please, some feedback Pro & Con. (If any)

Thanks Gang

Jim LaVerdi (Phx, AZ)

Re: Should I Iget this signed now or should I wait? - Posted by JohnBoy

Posted by JohnBoy on June 06, 2000 at 01:50:19:

Always sign up the deal and make it “subject to what ever you need to close the deal”.

You can sign off on this to where your payments begin on Oct. 1st. You can sign off on the deal and rent it back to the seller on a month to month lease. You can sign off the deal to where you take over on Oct, 1st Subject to the seller being out of the property when you get possession.

Basically you can structure this what ever way works best for you and adding in any clauses you need to protect yourself in getting the property. If the seller doesn’t deliver you can back out and walk away or even pursue the matter to force the seller to comply with the terms of the contract if the deal is profitable enough to justify doing that.

If you’re taking the deal “subject to” and lease it back to the seller on a month to month lease agreement, it would be foolish for the seller to breach the lease by not paying the rent. The loan is still in his name where he remains liable to the lender. He would only be screwing himself over by not paying you the rent. I would not lease it back with an option. He’s moving and needs out. There is no point in giving an option to him for 90 days.

You can also just sign up the deal effective as of today where the seller agrees to pay the next 3 mortgage payments and vacate the property on or before Oct. 1st, 2000 or buyer reserves the right to cancel this agreement. Now you have 90 days to market the property and get top dollar for it. If you find a tenant/buyer before then, get a large non-refundable deposit up front to hold the property until Oct, 1st. Just make this agreement subject to the current resident being out by Oct, 1st or this agreement may be canceled by the seller and the deposit will be returned under this condition only.