I’m just learning about Lease Option - Rent-To-Own scenarios.
My new-guy question is:
You’re Tenant-Buyer is ready to buy. Do you (the investor) first go through the entire purchasing process from the Seller and then the Tenant-Buyer goes through the entire purchasing process from you?
Or is it simple than that?
Is it assigned to the Tenat-Buyer and he buys from your seller?
How does it work?
Thanks.
Howdy ChrisJ:
There are several ways to do what you are talking about. One way is a sandwich lease where you lease purchase and then you re lease purchase to a tenant who will live there and eventually purchase the house with a new loan. Another way is where you actually buy the house and then just lease purchase to your tenant buyer. The first scenario is more risky because you have no control over the seller. He could try to bail out of the deal for instance if the house value skyrockets or get judgements against the property or file bankruptcy.
With the sandwich deal there is no need for you to go thru the process to purchase including getting financing. You will get the title company to do a double closing or just close from the seller to your tenant buyer and get them to cut you a check for the difference.