Lease Option Contract Question...
I'm in the process of negotiating a lease option with a seller for a nice 3b/3b single family home. The seller’s monthly payments are surprisingly small and I offered 2k for a non-refundable down payment. We have agreed on a two-year lease option with the option to extend for two more years if I decide to. The agreed upon selling price is below market value by about 10k. I know I can get about 400-500 cash flow a month from subleasing it and at least 4k-5k for non-refundable consideration money. I also plan on averaging the last 3 years appreciation % in my area and add it to the market value of the house and sell it for that price. All-in-all this deal is looking very promising if everything falls threw. My problem is I'm not sure how to do the contract. I've done lease options on a property that I own but never on a property that I don’t own.
-would I have to actually purchase the property before I can turn around and have the buyer buy it or can I have a contract stating that I will buy at a certain price and sell it at another and reap the profits.
I have considered getting a professional but that would run me about 2k... I know the importance of getting professional help sometimes and this might be that time but I just wanted to see what other people thought.
thanks......
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