First time Lease Option. Need Help!
If anybody has suggestions please reply,
Here's the situation. I spoke with a seller who is willing to lease his house with the option to buy. I will then sub-lease the house. I do not want to put up any money for the option.
Is there a way to enter into a lease agreement with the promise to buy after three or four years?
I would "promise to buy" because by the end of the fourth year, I will have paid for half of the house.
Is this arrangement done in a different way, or should I just put a clause in the agreement to "promise to buy." This way there would be no reason for the up front money for the option.
BWBSTL
Hi,..it all depends on what you spell out in the contract (get it all in one...lease AND Option)..and what your exit strategy is for the property....if you spell out that the option will be valid for 4 years...ypu have the right to buy at any time within that time frame...even at 3 years and 364 days....you must always put down a minimum consideration ($1) to make the option legally enforceable...make sure you have the right to sub let in your agreement..as the right to assign....but there's a lot more to the subject than what I can post here....get some materials..and read up on them...
good luck
J.
Ya, it sounds like you need to read up on some things... pay the 1 dollar up front, or be nice and give em a deal of 10 dollars up front, then turn around and have your T/B pay you 3-5% of the PV. thats why L/O are a killer for ya. Make sure you use a killer contract so there is no risk in it. Why do you want to promise, just make it an option, so you can walk away from it if needed. Dont put yourself in risks if not needed. Your controlling propertys, not tying yourself into them... Good Luck