Got a property under option contract for $1500. Found a buyer for 5k, he gave me $1500 deposit yesterday. Plans on paying it off in 2 installments, $2500 on Dec 5th, and 1k on Jan 5th. Hes a landlord using his rents to pay it.
Heres the problem, my option runs out on Dec 5th. I was wondering how I could structure this so the seller can QC to my buyer, and I still get paid the remaining 1k owed to me.
The seller and I talked and agreed I would pay him out of the $2500 I get on Dec 5th, then QC to my buyer. After that I need something to make sure I get paid the remaining 1k, or the property reverts back to me with no refund for monies paid or work already done on the property. At this moment, the buyer and I havent signed anything so what can I write up that protects my 1k after he gets the deed, plus, the payment on Dec 5th? I know this isnt the ideal way to do it but, I had to pay rent lol, and this should take care of that for a couple months if it works out. Thanks…
A simple promissory note between yourself and the buyer would give you something in writing. And you could ask the seller to extend your option for an extra month. Agree to pay him a couple hundred bucks or whatever if need be.
Also have your buyer sign a deposit receipt agreement detailing that his deposit is non refundable. If he flakes out he forfeits his deposit. That’s the cost of tying up your deal and not closing.
Thanks, thats how I figured it had to go, I think my question was pretty much, what do I do about the option I have with the seller, I have to pay that on or by dec 5th. Just get the qc from seller and not record it? then do one to the buyer and have buyer record both of them together, then have him qc to me and not record it, just in case he doesnt pay me. Seems it would be the cleanest way?