L/o Clarification-pretty Please:)
I need some clarification... You buy a house on a lease option and the sell your l/o to someone elso. Why would the original seller agree to do that? Doesn't he prefer to know the t/b that is in the house?
when you buy a l/o you will put down a non-refunable option but then you turn around and charge a higher option to the next person??? help!
A seller usually agrees to any creative real estate deal because you are solving their problems, IE motivated sellers. Just say someone is making double payments, or if a couple gets divorced and the person left with the house can't afford payments, or if the person can't afford the house in general and is going into foreclosure.. that' s just a few reasons why someone would be motivated to sell their house and making a large profit is the last thing on their minds.
So, you would offer a small option consideration to the vendor (ie. $1). Then turn around and sell teh house on a rent to own basis with teh buyer paying you a "non refundble option desposit".
Hope this helps,
J
I second Joseph,
in addition the seller is 'released' from maintainence of the property and in the long run may end up with more money than his original asking price.
The number one reason someone will do a lease option is -Debt relief. I never offer the seller (property owner ) any option consideration. Heck, most of the time there just happy that you came along provided a solution to their dilemma.