Cooperative Assignment question...

General Real Estate Investing
1

I have 2 questions…

  1. If you use the lease agreement and option with the seller and it states there that you can “sublet and assign” and then you assign your contract to the tenant would he/she be able to do the same thing and sublet or assign it??

  2. what other contracts would be necessary besides the lease contract,option contract and the assigment contract? … I was also thinking of recording a memorandum of option in the tenant’s name for good practice

2

My Option agreement says that this can not be assigned or subleted with out permission of the seller. Something like that so don’t use it word for word. The memo. of option is always a good idea. Herbster

3

I think you need to have the permission of the seller.

4

Didn’t I just say that?

5

don’t record the memo and it is a good practice that states some type of null and void language if the tenant does record a memo. The memo puts them on chain of title and can cause some serious problems if they breach their agreement.

Getting them to sign a release would be like pulling teeth which also might cost you some cash.

6

For those of you interested in cooperative assignments I’ve recently just discovered a new site and course that I think is awesome. I’m not getting anything for this either. visit CooperativePurchase.com and listen. Herbster

7

Herbster,

How does the material and their site compare to AJ’s favorite – TheNakedInvestor ?

8

Dave, Michael and Adam go way back. While Michael sticks mainly to the Lease Purchase, Adam goes further with Land Contracts, Conventional Morts, and Sub2. All of which that can be assigned or released. The two together are awesome. Herbster

9

I thought Michael was all about the CA aspect of the lease option business.

10

OH No, he covers every aspect, sandwich, straight etc. The CA as far as I know was only taught by Michael and probably his mentor C.Diamond.
Now Adam does them as well. The CA is very popular now and comes with no risk. I’ve seen you on the site, I thought you knew. BTW I use a diff. name there. Thanks, Herb

11

Yes, I try to answer income tax questions on the site. I do not do lease options and leave questions about the mechanics of a lease option or any of the variations thereof to the members that really do the business.