I am in an agreement with a seller to lease option his property on a rent to buy lease,seller is asking for 200k for property,do i tell the buyer he’s asking 200k but my fee is 5k,or do i just say home is being sold for 205k,and your 5k will be a down payment towards the purchase of the home.Please help,that could be my first deal,3 weeks into it. Thank you
P.S can anyone also tell me where to find a blank yellow yard sign. I’ve tried walmart and home depot…nothing there.
you already have a buyer? i would mark it up to $215k, and ask him things like “do you have a job, how much cash do you have available for a down payment, etc.”
Then you pocket the $5k-10k, which is either applied to the $215k upon exercising, or is ordinary income if the buyer refuses or cannot exercise.
you need to do more research. your initial question saying you were going to option the house at $200k from the seller, and then option to the buyer for $200k.
$200k - $200k = ZERO PROFIT
Thank you so much,the 200k part wasn’t explained correctly on my part,it’s 205k,but did i have to tell buyer home is for 200k but my fee is 5k to get in which equals 205k. I am doing what you said on everyone who have contacted me so far.Thank you so much for the help.
Are you doing a Cooperative Assignment? If so, the paperwork you’re using should clarify your position in the deal and make it clear to the tenant/buyer.