Posted by JohnBoy on February 10, 2002 at 13:51:42:
Go back and change the purchase price with the seller to state $154,600. Assuming you haven’t quoted any prices to the buyer already. But if you did then tell me the terms of the contract. You might still be able to get the $9k out of this depending on the contract terms and how to present it to the buyer.
Then take the $9k as an assignment fee.
Your buyer gets to assume your contract with the seller for $9k!
Get a release of liability signed off from the seller releasing you from any further liability from the contract.
What are the terms of your contract? Years? Monthly rent? What have you told the buyer as far as price and terms so far?
Owner owes $154,600 on the house. So we set the purchase price at $159,600 and the owner and I agreed that I would get to keep the “option consideration” as an assignment fee from the new t/b.
As you can see there is a $5k window. I have a t/b interested in the house and he would like to put $9k as option consideration. I have already told the t/b that the purchase price is $159,600.
Also I have already assured the owner that they would receive no less than $154,600. Thus, if the t/b opts to buy, he will only owe $150,600 however the owner will still owe $154,600.
Any ideas on what I can do with this $4k (9k-5K)overflow?