What are the differences between lease with options and land contracts? Which is better position to be in?[ Edited by EstateHunter on Date 12/15/2003 ]
Thanks. But what are the differences between the two? Is there more of a downpayment on one over the other? What types of things should be included in the contract? Will I be submitting an offer to purchase?
Sorry I have so many questions. It's my first deal like this and my brother's the buyer. We have no experience and no family role models so I came here to get help. Thanks for your assistance.
I don't know about land contracts, but I know lease options. If you are the buyer, I suggest you have a contract that has all the terms of the SALE. 24months from now, who will pay for what. If you are in the money the seller may try to make your life difficult. Seller should pay for his title policy etc. Furthermore, I would include that he pays for attorney fees should he be difficult, and perhaps a clause that if he does not cooperate, he owes the difference between appraised value and strike price value,+ attorney fees. Nothing wrong with lease options...as the buyer give as little down as you can and get a monthly credit for each of your payments. 1000pmt = 800 rent 200 deferred to down payment.
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Thanks So Much! I learn so much from everyone here. Would it be right to assume that on a lease option the typical percentage going towards the down payment for ownership is about 20%?
Thanks for send me the links to the articles. I'll read them all tonight. I'd like to structure my brother's deal where he's the owner right away but am wondering how to do it where it's a sweet enough deal that the seller goes for it instead of the L w/O. Any suggestions?
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are you buying or selling
Buying in 24 mos.
On 2003-12-15 20:47, nebulousd wrote:
are you buying or selling
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get the deed....just my "humble opinion" as they say.
I want the deed. If I can't get the deed, I don't want it. Others may preach L/O but not I said the blind man.
Thanks. But what are the differences between the two? Is there more of a downpayment on one over the other? What types of things should be included in the contract? Will I be submitting an offer to purchase?
Sorry I have so many questions. It's my first deal like this and my brother's the buyer. We have no experience and no family role models so I came here to get help. Thanks for your assistance.
I don't know about land contracts, but I know lease options. If you are the buyer, I suggest you have a contract that has all the terms of the SALE. 24months from now, who will pay for what. If you are in the money the seller may try to make your life difficult. Seller should pay for his title policy etc. Furthermore, I would include that he pays for attorney fees should he be difficult, and perhaps a clause that if he does not cooperate, he owes the difference between appraised value and strike price value,+ attorney fees. Nothing wrong with lease options...as the buyer give as little down as you can and get a monthly credit for each of your payments. 1000pmt = 800 rent 200 deferred to down payment.
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here are some articles.
L/O you a renter with an option to buy the house
land contract you own the property and the seller is acting as the banking
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=154
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=288
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=379
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=295
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=292
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=147
Thanks So Much! I learn so much from everyone here. Would it be right to assume that on a lease option the typical percentage going towards the down payment for ownership is about 20%?
Thanks for send me the links to the articles. I'll read them all tonight. I'd like to structure my brother's deal where he's the owner right away but am wondering how to do it where it's a sweet enough deal that the seller goes for it instead of the L w/O. Any suggestions?