Lease Option Deal
I have an opportunity with a sandwhich lease option deal. The house has been on the market with a realtor and now FSBO since September 2003. The homeowner got a job transfer out of town and has not been able to sell his home. I spoke to him today and I will fax him the contract tommorrow. He understands the whole process and told me "I don't care if you make 20k, I don't want to pay two mortgages." Safe to say he is very motivated. He states it is a buyers market right now and has had a hard time selling. He tried renting for a month, but had to take the tenant to court just to evict. He likes the fact that he can still market his home while I look for a tenant buyer. He already has a sign in the yard for Rent & FSBO. I was wondering before I put my marketing dollars to work and put my sign in the yard, how can I avoid anyone going over me and straight to the owner. Obviously he is going to be asking for less than what I will ask for. For Example, I have someone call me. I tell them to go drive by the house or they decide to do so on their own. There will be the owners sign in the yard, They call it and they give them a lower price as expected. That puts me out of the ballgame. Any suggestions would be helpful.
Here are the numbers
Appraised value in April 2003=186,000
My price=162,000 (mortgage balance)
Mortgage payment=1220
Mkt Rent=1300-1500
When you were able to get the house for the loan balance you should have got the deed. this would give you ownership and the seller would not be able to go behind you and do his own deal.now you basically are playing beat the clock ,hoping to get aT/B before the owner .if he does find someone all you can do is tear up the agreement and get your deposit back if any . place an ad saying rent to own or lease option and make the ad appealing , you should get someone within a few day`s or so >>>good luck
Get the contract signed and when its returned to you go to the house and take his signs down and put yours up. That said I agree that you should have tried to get the deed. It gives you more control.
Good luck
Joe
You should get him to sign a "Performance Mortgage". You should always get one signed when you do any kind of Option. It will keep him from selling the house while you market it.
It is late, and maybe I am confused, but what contract is the owner signing with you?
Quote:He likes the fact that he can still market his home while I look for a tenant buyer. He already has a sign in the yard for Rent & FSBO.
How can he market the property while you have a contract?
Brenda