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Author Topic: please help with this question  (Read 2796 times)

Offline janiecey

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please help with this question
« on: July 19, 2007, 12:18:49 pm »
Hi,

My situation : I have a preforeclosure under contract (working on a SS)
but i had another investor approach me wanting to do a lease option. i explained i couldnt make any money .if i do a lease option with the homeowner and he in returned lease option from me .. so i offered to assign the contract for a fee. he says he doesnt want to do that .. he wants me to act as the third party.  wants to pay an option fee of 20.000.00 and i take my fee from that and after that i am done ( isnt that the same as assigning?) The seller just wants to save their credit and will agree to a lease option but i have deed and have already started working with lender on ss... the property will appraise for 200.000 maybe a little over. my offer is 120.000

Offline reiauctions

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Re: please help with this question
« Reply #1 on: July 19, 2007, 10:39:48 pm »
An option is different than assigning the contract.  With an option the buyer has the right but does not have to go through with the purchase.  They are just basically tying up the house for however long the option period is.
Internet Auctions for Real Estate
http://www.reiauctions.com/info

Tom Wood

Offline janiecey

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Re: please help with this question
« Reply #2 on: July 20, 2007, 08:27:46 am »
ok  which is safer for me? if i assign the contract im done but if he has an option to buy with me where does that put me in the equasion? he wants an option for 5yrs that seems like along time to me seeing how there is no way both of us can have cash flow.. i just dont want to have all the responisblity and he gets the profit. I hope i am making sense  :rolleyes

Thanks

Offline reiauctions

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Re: please help with this question
« Reply #3 on: July 20, 2007, 08:43:56 am »
If he wants a 5 year option then that means the seller needs to continue to own the house and have the mortgage tied to them.  Since he is paying an option fee up front you could take a cut and be out of the equation but then seller is not.  Assigning the contract and cashing the seller out is probably best for everyone.  You might look at the option route if you don't have any other choices.
Internet Auctions for Real Estate
http://www.reiauctions.com/info

Tom Wood

Offline janiecey

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Re: please help with this question
« Reply #4 on: July 20, 2007, 09:26:58 am »
ok thats what i was thinking ....... he was very wordy when i spoke to him, I just got all jumbled up. I read on one of the forums . simple is better they had to be speaking to me lol  Thanks for your help  :biggrin

 




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