Specific L/O Questions
Ok I understand the basics of the L/O, but there are some fince details I need help on.
1) Do you generally pay a option deposit to the seller as well as collect one from the end buyer?
2) ok I set up a L/O with a seller for 10 years at "x" dollars per month. Say I can't get a tenant buyer. Am I then stuck leasing a house that I can't sublease? or did I miss something?
3) How do you worj this scenario? I have a tenant buyer loking for a house, I find one, get it under contract and then the T/B looks at it and says " Nah not what I am looking for I will pass". WEhat then? again are you stuck with a property you can't lease out?
Thanks
Joe
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1. I generally pay the Seller nothing; however, I will go as high as $1,000 if the Seller insists (was ever a Landlord before, for instance).
2. You probably won't find a Seller willing to give you ten years. Your Contract should bind the Seller for the total number of years, but you would only commit to one year with the right to renew for additional years at your total discretion. Finding a T/B is the easy part. Still, you should give yourself some time before the Contract becomes binding (I use thirty days). I even go a step further and use a very special Contract that makes my Offer a nonexclusive, which is a clever way to circumvent the Seller asking for any cash.
3. Find the Seller first. Forget about the T/B. If you do it in reverse and it's a nice house in a nice neighborhood, you will have no trouble finding another T/B; plus, you can still cancel with the Seller.
All three of your questions basically rest on the quality of your Contracts, your understanding of them, and your ability to negotiate.
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