Posted by Andre(NC) on October 15, 2001 at 08:17:41:
You know Damon Dash?
Who has done Co/op Assignments with Lease/Options? - Posted by RWB - MultiBeforeiDie
Posted by RWB - MultiBeforeiDie on October 11, 2001 at 15:23:18:
I am in a market where I think I can do quite a few co/op Assignment?s. I have the buyers who want to sell but don?t need all cash up front. I also have the buyers on L/O terms. How do I sign up the deal and keep the option money (or split the option money with the seller), then assign the contract to the seller so I am out of the deal.
I am positive I can put some of these deals together in weeks. If somebody can help me with the paperwork end of it. Any information on these types of deals would be of great help to this 21-year-old want to-be millionaire!
ONLY IN AMERICA
In Canada too! - Posted by Doug (ON)
Posted by Doug (ON) on October 11, 2001 at 16:33:58:
You’ve hit on it! This is exactly the area I’m focusing on as well. Maximize your profits while minimizing your liability.
It’s only marginally more complicated than an ordinary assignment and you can make 2 or 3 times as much money, not to mention give the buyer a better deal.
Here’s how you can do it:
- Use any L/O agreement (e.g. the one Bronchick has on his site) that is in your favor as the buyer.
I would be open with the seller about what I’m offering. I don’t want them thinking that I will be living in the house myself, or paying them or buying from them. Point out all the benefits to them, fast sale, better price, monthly income until the actual sale, etc.
-
Sign up a T/B using a separate lease and option, set the price and rent at something that will give you your profit and at the very least get the seller out of their debt.
-
Collect the option fee from the buyer.
-
Go back to the seller. Both of you then sign an Assignment of Agreement to pass the new option to the seller. A Mutual Cancelation of Agreement, to terminate your original option with them. And a Release of Liability, to let you off the hook.
All of the paperwork for a deal like this, from start to finish, should be able to fit on just 7 or 8 pages. 2 for the original L/O. 2 or 3 for the second L/O. And 1 for each of the concluding agreements with the seller.
Obviously the idea for this whole scenario is to maximize the option fee. You know, you can even take part of the option fee in monthly installments if the buyer has enough income.
I really like these deals because on the one hand you’re giving the seller part of the profit from a sandwich deal, and on the other you’re eliminating your risk and getting the most desirable part of the deal…the upfront cash. As they say, a fast nickel is better than a slow dime.
Doug
Re: In Canada too! - Posted by RWB
Posted by RWB on October 12, 2001 at 02:56:23:
Have you ever done a deal like this? If not I think we need to find somebody that has. Actually I have a course by Claude Diamond, which explains exactly how to do a Coop Assignment. I could email him to get the specifics or to get answers from some one who has experience doing this specific tool. Do you have any courses that you been studying?
Lets stick together and help each other out! I want to have somebody I can talk to thats trying to do the same thing. We could exchange Ideas.
Sincerly,
Ryan Brown - CEO Rocafella Real Estate Solutions,Inc.