I want to do a LOA but the landlord wants to use her contract. She stated
“We will be glad to rent to you and place a statement at the bottom of the agreement. That at anytime you wish to purchase within a two years, we will sell the home to you for the balance owing on the loan.”
How can I assign this option if she is using her contract? Thank in advance for your response.
Welcome to the world of “Move on to the next deal”.
Square peg, round hole…nuff said…
I’d love to have an owner tell me they wanted to use their own docs…
Thanks for the advice.
Did you even try to suggest using your paperwork? What is the homeowner’s objection to it?
This is a situation that scares off amateurs.
Here you’ve got a seller ready and willing to give you what you want…!
Okay, so they want to use their own contract. Great. Read it.
Then start your negotiations.
Cross out what you don’t like. Add in what you do.
Don’t throw the baby out with the bath water until you’ve established that the baby is dead…
Now, the baby might be dead if the seller won’t allow an assignment. So, we want to find out…
Maybe they would like a little more consideration…? Or maybe they’re just not stupid enough to allow any ol’ person to live in their assets. If you’re a professional, and can demonstrate it …and the seller trusts you …and they’re still motivated enough to do something… then you’re ok!
Again, show the seller that you’ve got your act together, and that you’re not putting them at undue risk. If you are a risk…that’s another issue.
The problem I see in these situations, where a seller agrees in principal to our offers, but wants to use his agreement, is that the seller read some ebook, and has been warned about the dangers, blah, blah, blah… and he’s got the super jiffy weasel clause ridden self-protecting contract that only the most anal retentive dupe would offer …and is not motivated in the first place. The last part defining the whole problem.
Most of the time, it’s a seller that has taken time to explore his options, and now wants his cake and eat it, too. However, you won’t know until you start asking questions and negotiating.
The other approach, among several, is to simply submit your offer on your own contract and agreement. What’s the worst that can happen? The seller rejects the offer? Well, that’s gonna happen 9 out of 10 times anyway regardless how sophisticated or pseudo-sophisticated the seller is in the first place.
Read the seller’s agreement. Make the changes. Present the offer.
Meantime, give the seller what he wants, and you take everything else.
Hope this helps.
Happy Fourth of July!
P.S. Everybody gets nervous if they think they’re dealing with someone smarter than they are …especially when it comes to dealing with money. We all would prefer dealing with someone with a 82 IQ who writes with crayons and uses the word ‘ain’t’ a lot, that isn’t going to take advantage of us. That’s just natural.
So, what’s the answer? Don’t let yourself be intimidated. After all you’ll have plenty of time to review your agreement before you have to go hard on anything. Then, don’t come across like a know-it-all yourself. Be a dove with tender wings and a soft coo. Then open wide and gulp down the competition!!!
:beer
Hi,
When you said "Landlord" your actually refering to another fellow investor, and the odds are 50 / 50 that the investor has more experience and knowledge than you do!
I actually think it’s a lost cause as I think they want to use there contract specifically to deny the ability to assign and sub-lease the property!
GR
I informed the mother-in-law (whom the son and daughter-in-law are allowing to facilitate this deal) that I needed a few days for due dilligence. I needed to buy some time. The MIL worked in real estate. Should I pursue this?
Why not just submit a “letter offer” or a contract using your own forms and see what their response is. That should tell you whether they’re a motivated seller or not.