Few More Questions?

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In trying to fully understand the whole process of L/Os, I have a few more questions. They are probably very generic but I just want to make sure.



1. I have read to do a credit check on both the owner (seller) and the tenant/buyer. Is this necessary for both of them and how do we do a credit check? Is that something we can do or do we hire a third party? What is more economic (cheaper)?



2. What about a preliminary title check? Do we go with one of those online services or should we use a title company/attorney?



3. Could someone explain the process of escrow?



From what I understand, It is good to put the deed into escrow, so the property can close quickly without some possible snafus (such as the owner moves out of state, or is difficult to find when it is time to close,etc.)

a. Is this necessary?

b. How do we convince them to do this? Is this a deal breaker?

c. If they agree to do this, what is the next step? How is this actually setup?

d. How do we actually recieve our profit when an option is excersised? How is the difference "put into my hands"?



4. I also read to set up some type of payment account with an escrow company, or a bonded/established accountant firm to accept direct payments from your T/B so the payments (PITI) can be made. What are your thoughts on this?



5. Regarding entities, having never done a L/O deal, is setting up an entity necessary at this time or should I wait?



Any input would be greatly appreciated?

[ Edited by dchuck on Date 02/21/2006 ]

Comments(6)

  • LeaseOptionKing23rd February, 2006

    I can get almost anyone financed after paying me with 12 on-time rent payments, so credit is a non-issue (but will be reflected in their interest rate). The T/B will obtain copies of the canceled checks from the bank.

    My Contracts come with explanations as well as a year of e-mail consulting.
    [addsig]

  • LeaseOptionKing23rd February, 2006

    I can get almost anyone financed after paying me with 12 on-time rent payments, so credit is a non-issue (but will be reflected in their interest rate). The T/B will obtain copies of the canceled checks from the bank.

    My Contracts come with explanations as well as a year of e-mail consulting.
    [addsig]

  • LeaseOptionKing23rd February, 2006

    I can get almost anyone financed after paying me with 12 on-time rent payments, so credit is a non-issue (but will be reflected in their interest rate). The T/B will obtain copies of the canceled checks from the bank.

    My Contracts come with explanations as well as a year of e-mail consulting.
    [addsig]

  • LeaseOptionKing23rd February, 2006

    Do you still have the original order notification?
    [addsig]

  • shasta925423rd February, 2006

    yes i do, it was emailed to my mailbox. If you want i can give you a call.

    christopher

  • LeaseOptionKing24th February, 2006

    Follow the directions in the order notification. You may also call me if you have any questions. Thank you for your business!
    [addsig]

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