Have you tried using a mortgage broker to find the buyer a loan? If you did and they still got rejected, then ask the broker what the buyer has to do to get a loan? If you did a lease option for a few years, then do you have records of all the payments the tenant-buyer made? It will help with the lender giving them a loan because it proves they can afford payments on this property.
1. My L/O states that the Purchase is NOT contingent upon Buyer obtaining financing. So even if they exercise the option, but can't get financing... then So Sorry.
2. I keep bank deposit slips from the Monthly Payments, separately for each property... If you have a minimum of 12 monthly payments made on-time a lender will be hard pressed not to approve them for a loan. If you want them to cash you out, I would help them find a lender...
Thanks for the fast responses. I did not have time to elaborate in my first post, however.
This is a commerical property that is L/Oed. Specifically, a poultry farm, which is a different beast altogether. Mortgage brokers won't touch them.
The problem is this, the current tenant has a L/O until August. He tried to get a loan twice before (unofficially, didn't actually exercise the option) and didn't qualify. He told me to locate another buyer, which I did. Now he has decided to excercise his option. I still don't think that he'll qualify, and I really don't think he does either. Which brings up another problem. He bought equipment (expensive) for the business that he wants to get reinbursed on if he can't get a loan and I sell to the other buyer, even though he signed that lease which states that he would be responsible for any and all repairs or improvements needed for the operation of the business.
Would you just pay the guy to get him out or go hardball?
You might want to consult an attorney on this one. Technically, the improvements made by the tenant during a commercial lease will belong to you. However, if his equipment is removable and he has receipts for the equipment, I don't know if you can stop him from taking it with him. I might be in your best interest to work something out with him. Perhaps you can give him a one year extension for a little bit more option consideration?
I know this isn't much help. Let us know how it turns out.
Thanks Kevin, my first impulse is simply to pay him for the equipment if his loan doesn't work out. Definitely no extension on the lease, though. I've got buyers lining up to right now, if he doesn't get it. All have been preapproved for money and just waiting on the deal. I'm still rooting for my tenant though, because I'll get $25k more if he buys it.
Have you tried using a mortgage broker to find the buyer a loan? If you did and they still got rejected, then ask the broker what the buyer has to do to get a loan? If you did a lease option for a few years, then do you have records of all the payments the tenant-buyer made? It will help with the lender giving them a loan because it proves they can afford payments on this property.
Tanya
Warrior,
1. My L/O states that the Purchase is NOT contingent upon Buyer obtaining financing. So even if they exercise the option, but can't get financing... then So Sorry.
2. I keep bank deposit slips from the Monthly Payments, separately for each property... If you have a minimum of 12 monthly payments made on-time a lender will be hard pressed not to approve them for a loan. If you want them to cash you out, I would help them find a lender...
Good Luck
Thanks for the fast responses. I did not have time to elaborate in my first post, however.
This is a commerical property that is L/Oed. Specifically, a poultry farm, which is a different beast altogether. Mortgage brokers won't touch them.
The problem is this, the current tenant has a L/O until August. He tried to get a loan twice before (unofficially, didn't actually exercise the option) and didn't qualify. He told me to locate another buyer, which I did. Now he has decided to excercise his option. I still don't think that he'll qualify, and I really don't think he does either. Which brings up another problem. He bought equipment (expensive) for the business that he wants to get reinbursed on if he can't get a loan and I sell to the other buyer, even though he signed that lease which states that he would be responsible for any and all repairs or improvements needed for the operation of the business.
Would you just pay the guy to get him out or go hardball?
Roger
Roger,
You might want to consult an attorney on this one. Technically, the improvements made by the tenant during a commercial lease will belong to you. However, if his equipment is removable and he has receipts for the equipment, I don't know if you can stop him from taking it with him. I might be in your best interest to work something out with him. Perhaps you can give him a one year extension for a little bit more option consideration?
I know this isn't much help. Let us know how it turns out.
[addsig]
Thanks Kevin, my first impulse is simply to pay him for the equipment if his loan doesn't work out. Definitely no extension on the lease, though. I've got buyers lining up to right now, if he doesn't get it. All have been preapproved for money and just waiting on the deal. I'm still rooting for my tenant though, because I'll get $25k more if he buys it.
Thanks again,
Roger