Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on Twitter

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Sponsored Links
How To Advertise Here
How To Advertise Here

Sponsored Links
(Views)Popular Topics
No new orders today 13180990
Stupid MLS comments. 3475420
What do you know about Froy Candelario, top agent in USA 1303338
Stupid QC comments and BPO requirements. 1145887
New HUD Listing Brokers---Any Update? 1098959
Is there religious content in Buffini class? 886860
Let's talk about our cars 736149
Most common items found at an REO 666563
Pay it Forward - BPO/REO Tips & Tricks I & II 650949
Name that Flick. Great movie Lines. 650654
Main Street 473733
EML 459240
asset val seminar in colorado 441473
assist 2 sell or 1 percent realty? 380172
HOMONYMS - There, Their, and They're 356666
Evalonline 300214
Land America 285054
Mainstreet 261862
Matched Content
Topic Options
Rate This Topic
#462487 - 09/21/18 12:20 PM Lease Option Agreements
nyropist Offline
Junior Member

Registered: 09/21/18
Posts: 2
Loc: South Carolina
Sorry if this is long winded! But I do have a few questions pertaining to Lease Option Agreements.
Can I use the same “Lease Option Agreement” for both sides of the “seller/me” and “buyer/me” , and just change the terms?
After I find “tenant/buyer” for “seller/me” for the “home owner”, I want to leave the deal because of no equity, or I just don’t want to stay in the deal. Do I just simply “assign” the Lease Option? Is it really that simple and easy? If so, do I “assign” the “tenant/buyer” LOA to the “home owner” or is it the other way?

This is the one I’m have problems with, in a sandwich lease. At the end, and time of closing with “tenant/buyer” how do I reflect the “tenant/buyers” $10,000 “deposit” or “non-refundable consideration fee” if the “tenant/buyer” believes that the $10,000 is going towards the $120,000 purchase price of their new home?
AGREES TO $100,000 purchase AGREES TO $120,000
$1,000 DOWN $10,000 DOWN
$900.00 IN RENT/MO $1,200 IN RENT/MO
In the front end, I will be getting the $9,000 from “TENANT/BUYER”, on the back end I’ll get the rent spread and the difference of $10,000 at the time of closing. The “tenant/buyer” is going to tell the loan company the need $110,000 loan because that already put $10,000 “down”! How do I structure this deal to make their $10,000 non-refundable fee apply to the purchase price as a “down payment”?
Any and all insight would be greatly welcomed as I am very axoins to get this going.

#462489 - 09/21/18 01:29 PM Re: Lease Option Agreements [Re: nyropist]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7950
Loc: Vermont's North-East Kingdom
I'm confused . . . . are you the Owner and trying to sell your property using this mechanism to structure a Lease/Purchase ?

I guess I don't understand your use of both of the terms: Buyer/Me and Seller/Me.

And you have already identified a Lessee/Buyer who has the money for a Down Payment; but doesn't want to make the purchase now ?

If that's the case, WHY do they want to delay the purchase and Lease instead of buying it right now ?

What's the difference between the two rental amounts . . . . the $900 per month versus the $1200 ?

I guess the same question applies to the different purchase prices of $100,000 and $120,000 . . . . with no prospect of a price somewhere in between those two amounts ?

Of Course, the $10,000 Option money is applied to the transaction ONLY if the Tenant exercises the Option and actually proceeds on to purchase the property . . . . otherwise it will have been "spent" just to purchase the "OPTION", regardless of whether the option was exercised or not.

Sometimes, the Tenants use the option just to encumber the property to prevent it from being sold to someone else, and they never intend to purchases the property themselves . . . . that's why there must be a cost associated with the deposit (purchase of the "Option to Buy", and that's why it must be made non-refundable and why it must be large enough to cause some hurt if the Tenant chooses to abandon it.

I've none a few dozen of these (maybe a hundred Owner Finances, Option to Buy, Rent to Own and Lease Purchases) and find that it's often a case of a Tenant just wanting "control" and to take the property for a year long Test Drive before really making a commitment, or attempting to negotiate a cheaper price only AFTER they have become very familiar with both it and its neighborhood.
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"


Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.

Newest Members
vabewecer, LeatriceLou, executiveRMN19, duerksenrental, Gloria Lowry
30753 Registered Users
Who's Online
3 registered (Nancy and Bill, leaf fan, Serg), 49 Guests and 7 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
CathCoy 93
OahuAgent 43
gitmonee 28
estatereal 27
Lucky Leonardo 25
Trouble 24
FlyHigh 18
ThePeanutGallery 16
Nash Vegas 15
sualk54 15
Z06Fanatic 15
RobR 14
leaf fan 12
RonnieEmz 10
MetroD 10

How To Advertise Here

This site presented by RNC Internet Services