If the seller dies you had better have taken steps in the option to cover that situation, and every option I have ever seen has a provision that speaks of the option surviving the optionor (did I spell that right) and any heirs must comply with the terms.
If the seller should have a foreclosure problem then I would say that someone committed fraud. If the rent was paid, and the mortgage wasn’t, I believe there is a strong possibility that someone could go to jail. Most times a third party would handle the payment transfer or the person in the middle will pay the mortgage directly and provide the owner with proof that it was paid.
If the seller was to sell the house, then I would ask the person in the middle why in hell didn’t they record a memorandum of option with the county. This memorandum recorded would stop any transfer of title when it was found by the title search. And only a court and the person who recorded it have the power to remove it from the record or cancel it.
Never just slap an option together without help. I am not saying that you need to have a lawyer do it, but at least read up on it and follow the instructions. But there is no better way than to pay a lawyer to do it. Once you have paid them one time you can use that same document over and over. Just get it in MS Word format and make the changes as needed for the address, price and names.
Tim
From: CREI-Alliance@
Sent: Thursday, January 03, 2008 9:03 AM
To: CREI-Alliance@
Subject: [CREI-Alliance] Re: How to Control A Property and NOT Own It!
Patrick, how many sanwiched lease options have you done (when you
lease from a seller and to a buyer at the same time)? Have you ever
had a problem with the buyer wanting to buy but the seller not wanting
or being able to sell?
What if your seller dies and his estate isn't settled when your buyer
demands to exercise his option?
What if the seller is in foreclosure when the buyer demands to
exercise his option?
What if the seller sells his house out from under you?
Thanks,
- Mike
--- In CREI-Alliance@
> I recently purchased a property on a lease option with a consideration
> of five dollars (the seller did not like the idea of one dollar to
> execute the agreement). I turned around and sold the property on a lease
> option. I agreed to give the seller fifteen hundred dollars for the
> first months rent in three days, which I did. I charged my tenant six
> thousand seven hundred and fifty dollars to move into the property. That
> sixty thousand seven hundred and fifty dollars represented; seventeen
> fifty deposit and seventeen fifty first months rent with thirty two
> fifty being option consideration. I turned around within three days like
> agreed upon and gave the seller one thousand five hundred dollars for
> the first months rent. This left me with five thousand two hundred and
> fifty dollars, to which I put in the "Hip National Bank". All of
> this occurred with a 6 hour time frame.
>
>
>
> So, I was able to control a property, sell the property on a lease
> option, and put over five thousand dollars in my pocket within 6 hours.
> I am not tooting my own horn here. I am just trying to show you how
> flexible, fast, and rewarding this type of real estate investing is. By
> the way, the above example is called "A Sandwich Lease Option".
> I bought on an option and sold on an option. In a sense, I was nothing
> more than a middle man that put buyer and seller together to which I got
> paid for. Also, in the above example, I received two hundred and fifty
> dollars every month until the tenant buyer closed out his option
> agreement with me to which I would close my option agreement with the
> seller.
>
>
>
> These types of conceptual real estate techniques are done daily, perhaps
> thousands of times a day. With the above example, I could have had a
> "rolling lease option" if the seller had other property to sell,
> I could have optioned the mineral rights, water rights, air rights,
> improvement rights, I could have added other concepts to enhance the
> performance of the agreement according to the participators involved. In
> short, lease options are in my opinion the ground work for "Creative
> Real Estate Investment Practioners"
>
>
>
> I believed....
>
> Patrick M. Cripe
>
Earn your degree in as few as 2 years - Advance your career with an AS, BS, MS degree - College-Finder.net.
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
__,_._,___
Tidak ada komentar:
Posting Komentar