I spoke with an attorney recently and discovered that in florida, it is likely considered ‘practicing real estate without a licence’ to get into either a lease option or even a straight option (with assign clause) and that I could get into legal trouble if I don’t have a RE license.
I’ve purchased books a long time back that show a step by step approach and even provided well-engineered contracts for both L/O and straight options. The problem is, the volumes of people doing ‘double closes’ are risking the whole deal falling down if the buyer bank refuses the deal (seeing an obvious outlay of cash in the HUD-1 to some unknown 3rd party), and this could even cause the 3rd party (you or me) some jail time.
My real question is - why are double closings for L/O arrangements being taught whatsoever? They were fine in the 80’s and 90’s but no more, especially since govt institutions in lending are putting a stranglehold on the practice, generally, and that most banks refuse to do them.
What I want to do is simple. I want to contact sellers via direct contact (email/online/phone) or place ads in newspapers, get either a lease option or option, then get a tenant buyer (L/O) or turn a straight option over to an end buyer, be the option for raw land, improved land, or full-on developed buildings and houses. I cannot believe that I could go to prison for doing lease options or options in such a broadly taught manner as this, without a RE license. If anyone in florida can give me some clarity on this from their own experience, I would greatly appreciate it!