What To Do When Tenant/Buyer Want To Purchase?

Comments(5)

• 
  2000rock31st July, 2003

  duckbagger,
  
  "I feel that I have a grasp on 80% of the L/O process, but here is my question: I have a purchase option contract with a seller. I then find a tenant/buyer to enter into a lease option contract. So I am in the middle here, I collect the Option payment and monthly cashflow. But, what happens then when the tenant/buyer wants to purchase the property? How do I and the seller get cashed out?"
  
  If TheContract is 100% correct ...
  
  ...when YOUR L/O buyer closes ..
  
  You and your Seller...get CASHED OUT...
  
  
  ....as always,
  
  
  GoodInvesting, Rocky

• 
  duckbagger31st July, 2003

  Thanks for the reply rocky... But I am looking for a little more detail. Of course I understand that the cash out ultimately comes when the tenant-buyer finds a loan. But what I am not sure of is this. The tenant buyer is settling with me for a home that I technically do not own. So how does the process work? I cannot accept money from the tenant-buyer and then pay the seller, and if the tenant buyer provides the financing to the seller directly how can I ensure that I get my cut?
  
  Any help, is appreciated.

• 
  antone3rd August, 2003

  you get the buyer a loan and submit all info to the loan officer they submit the info to title company and they take care of the rest tell the loan officer you are also on a l/o he or she will then know what to do if they dont find one who does thers plenty out there

• 
  duckbagger3rd August, 2003

  Ahh Hahh it all makes sense now !!!
  
  Thank you Antone!!!
  
  Quote:
  On 2003-08-03 11:31, antone wrote:
  you get the buyer a loan and submit all info to the loan officer they submit the info to title company and they take care of the rest tell the loan officer you are also on a l/o he or she will then know what to do if they dont find one who does thers plenty out there <IMG SRC="images/forum/smilies/icon_cool.gif">

• 
  allandinger3rd August, 2003

  Quote:
  On 2003-07-31 04:39, duckbagger wrote:
  Hello Everyone I am new to the L/O Process.
  
  I feel that I have a grasp on 80% of the L/O process, but here is my question: I have a purchase option contract with a seller. I then find a tenant/buyer to enter into a lease option contract. So I am in the middle here, I collect the Option payment and monthly cashflow. But, what happens then when the tenant/buyer wants to purchase the property? How do I and the seller get cashed out?
  
  Thanks in advance for your help!!!
  
  
  
  Hello. The way you will most likely close this deal is with a double ****Must Reach Senior Investor status before posting URL's***he money that your buyer brings to closing fulfills the agreement you have with the seller and you keep the ****Must Reach Senior Investor status before posting URL's***he funds would go into escrow with title company out of that money your seller would be paid what was ****Must Reach Senior Investor status before posting URL's***he difference inthe contract price from what you paid your seller and what your buyer agreed to pay you will be cut to you by the closing attorny.