How do I sell a house (l/o) without buying it first?
Hello All,
I signed a l/o contract as the lessee and locked in a price. The issue I am having is, the house is appraised at 40,000 over the asking price of 180,000 and I have a buyer for it. However, I do not own it. How can I broker a deal between these two parties and still make money? If this is or is not possible please advise, I need input. Many Thanks.
Phyllis 
I know you can lease option this house out at the higher price $40k that you can profit at or higher, since the house will be taken over at some future time. Plus you might want to get more money each month that what you are paying the person you leased optioned from, so you have monthly income as well.
Arthur
Hi Arthur:
Thanks for your input. I will explore the option of leasing it to another party. However, I am somewhat in the dark about what forms I need and the term used for this type of transaction. Could it be assignment?
Phyllis
I've got to hand it to you...you're very gutsy getting into a deal without having a clue of what you're doing.
Anycase - if you plan on staying in the middle it's a sandwich lease if you plan to sell (assign) you're contract with the original seller to your t/b'er and get out of the picture it's an assignment. Take a good look around for materials on the subject - and get yourself a good REI attorney because l/o's need to closely looked at and the paerwork has to be state specific(ask your local REI club for references). The best authors on the subject are... IMHO Conti/Finkel, Diamond, Bronchick,Gurevich Kaiser and De Fiore.
Good luck
J
JohnC,
Do you have any idea how long I've waited for a response as clear and concise as yours? While waiting I read as much as possible, and still everything wasn't exactly connecting. Thanks for taking time to share your knowledge, it's much appreciated.
Good Luck,
Phyllis
for so little?...no prob...I'll be in atl end of march btw... ))...
wannabrich,
just FYI--your web link is not working.
.
[addsig]
I have a similar question on this issue......I understand the "assign" portion, my question is how and when do I get paid the difference between my l/o contract and the buyer I have?? I am currently doing conventional purchases for people who want a l/o and then having them buy from me....I would much rather not have to buy the property at all and get the deal in the middle.....I am confused as to how I get paid for the possible $15-20,000 difference in the 2 l/o contracts.....any info would be great...I have many people calling me for these deals....
Hi SpeedRacer,
Since the time of my post, I found a solution. I secured the property with a l/o agreement, found a potential buyer for the property, assigned the lease with an agreement,(the l/o I signed stated that it was okay to assign, but some don't) the purchaser signed a lease option with me (sandwich lease) I received the down payment for the l/o and I receive the difference at closing between the original owner's selling price and my selling price. I just made the deal and legally, I don't have to own it. The buyer nor the seller has any issue with this, they're both getting what they want. I also contracted with the original owner for the difference between the asking and selling price to protect myself. The deal closed and I received a nice check from the attorney. Also have an attorney help you.
Finally, I am not sure if you know this, but there are some great materials and information available from John Locke, JohnMichael and others availablen to help you navigate the process successfully.
I hope this helps a little.
Phyllis aka wannabrich