This may be a dumb question but I’m very new to all these creative financing options and I wanted to know the difference between a lease option, a wrap and a convey of title? What are the pros and cons of each keeping in mind I am operating in Texas which has a lot of laws concerning lease options. Thanks for any help.
Google “lease options in Texas”, “mortgage wrap in Texas” and “convey title in Texas”
A lease option does not convey title.
A wrap would convey, or if you did not convey title on a wrap (owner finance) within 180 days, it is considered a contract for deed. (In TX)
I do nothing but LO’s in TX, and DESPITE what the rumors are… you can do LO’s in TX.
A wrap note is where you are creating a note and “wrapping” it around the existing note.
Pilot 76180, have you been successful in evicting a optionees in Texas since the law changed? I hear you say you can do them and yes I agree anybody can still do them but has anyone defaulted and what was your outcomes with the judges or optionees’s lawyers?
you can know more about lease option or rent to own here, http://www.homestarsearch.com/rent-to-own-introduction
The law requires a Notice of Default and allows them 30 days to cure. After that, you evict.
I have yet to have any issue at all, but, to be honest, I screen my T/B’s so much that I haven’t had to evict in a very long time.
More to the point though, I’ve never had an issue whatsoever.