Newbie With Questions About Option Agreements
Hi all, I am reading all the other posts to help me learn, but that will take me some time. I would appreciate some help answering some questions about lease options and open options. I used to be a nuke electrician in the Navy, and i have a tendancy to over compplicate things.
•Since the investors option price will be less than what is offered to the buyers, do I have to use two different Purchase and sales agreements? Or do I tell the buyers to hold tight, exercise the option and assign the purchase and sales agreement?
•If two purchase and sales agreements are to be used, then will this result in a double closing? Or will it constitute an assignment?
Thanks, Michael
[ Edited by cash4housesandnotes on Date 05/22/2007 ]
What does your contract say? If not addressed, you must (May) renegotiate with the Owners.
I have had some close personal dealings with this company, the actual process by which they "make money" is pretty drawn out and complicated, but it has also got some flaws in it.
My advice... stay away
My advice is do your due diligence.
I have done business with FranklinSquires and I find their word to be good. They may be a little slow on some things, but I have been recieving lease payments from them on 2 properties for almost a year now with no problems.
My basic understanding is they find real estate that they can tie up at 70% LTV, and then use the equity for other investments, etc.
My initial concern was that it seems very hard to just find out from anywhere what they are really doing, that it concerned me.
How much is your mortgage payment?
[addsig]
Something doesn’t seem right here.
To start with, Wachovia isn’t the one who would have calculated the payoff.
A payoff statement from Chase would have been sent to escrow before it ever funded. Then that amount would have been prorated to the day of closing. Granted, sometimes there can be minor adjustments before you get a final closing statement. But typically funds are held back for that.
Something definitely seems wrong…but that doesn’t surprise me with Chase. I’ve seen them do some pretty slimy things.
I might suggest first talking to whomever you worked with at Wachovia and escrow to see what their take is on it. there should be a release-of-lien from Chase.
Continue payments to who? Sounds like Chase says to them, therefore nullifying the Wachovia loan.
If you and Wachovia still want to do business, then the loan would have to be recast with you paying higher payments or a longer period of time. Chase would be out of the picture.
Regardless, Wachovia is not going to take a third position.