Help, Option To Buy Home Need Some Help.
I am currently in the process of doing paperwork for an option to buy a home worth about 85,000 for 67,000. HAve some questions. Metro Detroit Area.
Should I use a simple purchase agreement rather than a option contract. And where would the simplest purchase agreement be? I heard people say to use a skinny contract or simple pur/agree is this the best.
What time frame should I give the option?
Do I need to record the option, i have read multiple reasonings on this and want to know if i should record it or protect like B. Zick says, Secure your option or notice of option by recording it with a deed of
trust or mortgage.
I would like to sell this property not lease option, and i am offereing cash back at closing what else do you think i should offer and how should an ad look to get this home sold within 45 business days or so?
Just started so dont have extensive buyers list this guy called us up from an ad and wanted to know what we could do becasue he was living out of town so we came up with a solution just dont want it to slip through our hands we know we can sell but with the season coming and winter here want to make sure we keep the deal alive. As I said offereing cash back seems like a good idea. Any other thoughts?
by the way when doing subject 2 is it best to let a title company control the deed as oppose to telling someone sign over your deed you tell them the title company will control the deed until you are cashed out. Then you dont have to worry about subject to.
Lease options are just another tool to be the TOTAL real estate investor person. I do not advertise to find them, but somehow they always find me. I have done several L/Os and overall have had good results.
First one: very nervous, but got 2k cash up front + 1k per month above mortgage for 5 months. Tenant a little shaky after that. Some lates, a bounced check that caused me some trouble with my own account. Ended up selling the property for an additional 5k about 9 months after purchase. Bottom line: 12k in less than a year when I was never on a loan.
Another one I had tenants move out after putting 5k down and staying only 10 months of year lease. I got 5k from someone else on a year lease, we wil see what happens now.
Just like any other deal, there are good points and bad. I do like the idea that I can usually get a property rented with 3-5k in just about a month with no mortgage liability for my credit report. Also, it helps with me being able to say that I have blank many rental properties. Also, I have a few people who are ready, if I need them, to take over my position as the owner for an additional 2 or 3k just by signing an assignment of beneficial interest. They will get 7-10k in equity, plus they know that the L/O tenant will probably NOT purchase then they will get another 3-5k within a year.