Selling On Lease Options
What could happen if your tenant/buyer chooses to buy but the seller reneges on selling it to you? Also, where does the cash to buy the house come from if you don't have the money to purchase (how does the money get to the seller since he has to get his money before you can get the money from the buyer)? Wouldn't you have to purchase and get the deed/title before you can flip it? Sorry if these questions seem ridiculous-i'm new at this
Let me explain a little better. This is in regards to taking over payments on a pre-foreclosure and given the option to buy. Then you try to find a tenant/buyer ASAP to rent to giving them the option to buy.
with the original seller and through the l/o wich you signed, you will have a " and or assigns" clause..which will allow you to , in essence, sub-lease(option) the property..you should record this with the parish at this point, which binds the agreement..if you can sell with-in your own agreement then no harm-no foul..if it goes past your orginal simply re-negotiate with original seller and add on to your buyer..this might result in a double closing which can be trickier then the gurus say, but it can be done....hope this helps
regards pat prentiss
thanks. how does a double closing work? how would you get the money from the buyer to the seller and first have the title to give to the buyer? confused.
NiKoLaS,
It's ALL done at the closing...
....with ALL parties to the deal there..
Checks are cut to ALL who are due...
....as always,
GoodInvesting, Rocky