Selling My L/O Contract?
Hi, Gang.
I have a L/O in place with a $9,000 spread in the purchase price and monthly cashflow of +$190.
My question is this: Can I sell my position in this L/O to another investor? My contract with the owner states "&/or assigns". I could use the cash right now more than the cash flow.
Thanks for any input.
- creekside
Yes, you can assign your option. I don't know about your lease. What does it say?? Are you the tenant-optionee? Or, are you the sandwich lessee-optionee???
It's important to find the owner a replacement investor who will not put him in a precarious financial position.
You should have the assignee release you from all future liability. The icing on the cake (not necessary) would be to get the owner to also signoff on that assignment. document.
Hi, Sammy. I am the sandwich Lessee-Optionee. Have the seller sign off on the option also... I like that. I like the security in that. And I agree, the assignee would need to be someone that I am confident would fulfill the 'sandwich' position in the deal. My L/O with the seller is a single document that names me '&/or assigns' as the Lessee-Optionee. My subsequent L/O uses two separate documents for the lease and option sides.
Thanks for the input, Sammy.
- creekside