Who Pays The Closing Cost :-? ( I Am A Newbie )
Hi everybody,
Let's say I invested in property with a lease option, I found a potential buyer for the property.
1- Who pays the closing costs for the property: me or the potential buy. :-?
2- Is there a way to avoid the closing costs.. :-?
3- Are contract assigments possible in lease option ? or are contract assigments possible only in contract flips.
Thank you all
1. Negotiable, have the other person pay it
2. Sort of, see above
3. Not sure what you mean here, if you get a lease option on a place, I would assume you could sell that contract or assign it.
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You get to keep it regardless. You just have to document it better if it's going toward additional Option Consideration (and only above fair market rent). Lenders are inconsistent with this, so it's best that rental credit just be applied towards purchase price (which they will all accept, since it just lowers the sale price).
[addsig]
Dear cmon:
(LeaseOptionKing - please correct me if I'm wrong, but...)
I had the same question, too - rent credit is just that: "credit." It's a notation on the paper. You keep the cash, and the T/B gets a notation in the "credit" side of the transaction. That's all. It's just a notation, you keep the money.
(Right, LOK?)
Correct.
[addsig]