Lease Options
Please advise what reason would one use to get a raw land seller to do a lease option on land for 90-180 days, while I pitch it some big builders.
I don't want the land owner to smell what I'm up to...
I also don't want the builders to wait until my option period expires and go around me direct to the land seller.
How do I prevent both events from happening ?
How about "I really would like to buy your property but I am not in a financial position to purchase it right now. Can we agree on a price and terms (cash)and get a contract on it and we can close in about 9 months. By then I will have the money to buy it from you. For now, let me show you that I am interested by giving you a non-refundable option fee of $1,000."
Make sure that you record your option so that he does not sell it from under you. Get the option period for long enough time to be able to close the deal with your developer.
Prior post is perfect that is exactly what we do and have done for many years. very nice. However I put in an additional hook, where possible, a bit taxing on your ability to negotiate, but here goes.
I include in the option agreement that an additional 9 months extension of the option agreement can be had at end of nine months by presenting another payment in the sum of $1,000. To add an air of authenticity, I may add a clause that allows me to come upon the land and conduct a soil test and a land survey.
Good thinking. Lucius