Hello,
I would like to see if anyone has a good exit strategy in a lease option deal. I want to set up a deal with an owner for a lease option then i want to put my tenant-buyer into the property. Now what the owners wants as terms, such as option money i will be getting from my tenant-buyer. Is there a way to just get my share of the option money and not have to go to closing. Can i just negotiate a deal in which i just go as far as hooking up the owner and my tenant buyer? Thank you and any suggestions would be great.
Looks like you’re trying to set up a CA ( cooperative assignment ).
Get the seller under contract for $1 then assign the ageement to the buyer while you collect the buyers option consideration or part of it.
Sorry I’m not allowed to supply the forms. Search CA’s here and learn more. Herbster
Like the Herbster said, you are describing a Cooperative Assignment. Put the deal together, assign it to the end user, collect your share of the option money, (preferably all of it), and be done with the deal. Repeat. Profit. :cool
AJ, I did as you have and joined your other favorite site. Its well worth it. herbster
Since it’s free to join, I guess it is! 
I agree. Good info there, too.
Im not sure I get the details of this. So for example you assign it the end buyer for say 6k through an assignment of contract form. Then say the owner wanted 3k wouldn’t you set up the original contract for 3k as the option instead of $1?
And in total the end buyer ends up paying 9k, 6k for the assignment and 3k for the option.
zachj,
A cooperative assignment is not a forward assignment. It is a reverse assignment. The investor in the middle of a sandwich lease option has already entered into a lease option agreement with a seller. The investor, in turn, lease options the property to his tenant/buyer
At this point, the seller has a lease option agreement with the investor. The investor is a renter and the seller is the landlord. The investor, sublets the property to his own tenant under a lease option agreement between the investor and the new tenant/buyer. The investor has sandwiched himself between two lease option agreements.
Now, if the investor wants to get out of the middle of this sandwich, he assigns his agreement with his tenant/buyer to his seller and keeps the option consideration he received as his assignment fee. The seller replaces the investor in the agreement the investor had with his tenant buyer. The lease option agreement between the seller and the investor is terminated.
The seller keeps any option consideration he received from the investor, the investor keeps any option consideration he received from his tenant/buyer. In the end, there is only one lease option agreement – the one between the seller and the tenant/buyer. The investor has dropped out of the deal completely. Presumably, the seller is happy with the arrangement because he will be getting a higher rent and a higher sale price from the tenant/buyer than he had originally negotiated with the investor.
You can get much more specific detail if you go to AJ’s favorite web site and purchase the manual.
I think im just getting mixed up because the guys above are talking about assigning the agreement to the buyer, and your talking about assigning the agreement to the seller.
Seems it would be easier to just assign it to the buyer.
zach,
I guess I don’t understand the term “cooperative assignment” then. AJ does lease options so he should know. I don’t, so feel free to ignore everything I just posted. The “reverse assignment” technique I described is still valid, I guess it is not a cooperative assignment in the context used by AJ and herbster…
Dave T is right. You can assign the deal either way. I find it easier to assign the deal to the tenant/buyer and so that’s how I do it.
Hey AJ you beat me to it and yes I did buy the manual, I just use a diff. username over there.
herbster