Closing Your First Lease Purchase Deal.
I have found a couple of properties that the owners are willing to do a Lease with Option to Purchase. This will be my first deal and I want everything to be done right. Can someone please tell me what forms I need to take with me to meet the seller, should I have the contract notarized and record the option at the court house, and exactly how do you do a closing? This very green newbie really needs help. <IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by cjmacks on Date 06/25/2003 ]
CJ,
I mainly do nothing but Lease Options and Subject 2 deals here in North Carolina. Here is what you will need when you go meet with the seller:
1. Lease Option Form
2. Performance Mortgage
I usually will try to get the seller to sign a performance mortgage because when it comes time to close, I would just assign my rights over to the tenant/buyer. My assignment fee would be the difference that I offered my t/b vs. what i owe the seller. Now the performance mortgage will cloud their title. It stops the seller from refinancing etc. without your knowlegde.
Hope this helps.