Hi i would like to know on how to close a lease/option deal, I lease/optioned a property and subleased it to my tenant-buyer. How does the closing process work? . Do i close with the owner/seller and then with the tenant-buyer? The purchase price i have with the tenant-buyer is higher than with the owner/seller. I would like to make on the difference. Thank you.
As I understand it, you have a sandwich lease with contracts to both your seller and T/B, and now your T/B wants to exercise his option.
I don’t know the exact structing of your deal, what state you are in, the seasoning requirements, etc. The best recommendation - particularly this being your first time with this type of deal - is to simply take your paperwork to your title co. and they will know exactly how to handle it and make sure you get paid.
If in doubt on most any question about your structuring, paperwork, or general RE law, don’t hesitate to ask a title co. The info is generally free, as they want your business.
I’m here in Nothern Va. I heard i can do a simultenous closing. Is that correct?
Yes, there are several ways of closing this for you. Your title co. will recommend which is the most expeditious and less costly to you. Read my post again.
Just cloud the title for security with affidavit and memorandum of Option / Purchase Contract & then just assign the deal option and have the owners close with them directly… avoids seasoning…
It can show up on hud as 2nd mortgage payoff or something… just make sure the buyer knows you intend to make a profit and make it clear… clouding the title should secure your position…