I have a question for anyone that can help. I have a seller that has agreed to sell his property to me through the lease-purchase option. Seller is not in need of money but has bought a new home and is ready to move. We have agreed on the terms, price, and date to conclude this deal. But…there is one small peice missing -Seller does not know that I will sub-lease the property. How do I introduce this without turning him off and ruining the deal?
Seller is easy to work with but has not asked what my intentions for the property are(in this case I would have of course answered honestly and been prepared for objections), however, since this is my first Lease to Purchase - I was too chicken to volunteer this info.
I was up half the night doing research and trying to find information about this issue. I have two courses on lease options that barely glaze over the subject of how and when to tell your seller about the sub-lease part of the deal.
The best approach is the humble I am new at this approach telling him that you wanted to tell him up front but were just too shy being new at this and all apologizing all the while and telling him that you were not being deceitful or dishonest and had it come up before now you would have told him then.
Another way is just do it and let him find out and say Oh well we have a contract and you must abide by it, You do not sound like this type person but it works for some that I have known and will not work with.
Another white lie that will work is to say that something else came up and you wanted to lease another house instead and still wanted to full-fill your agreement and not lose your deposit.
I like this one better than the above but less than the first and this is to tell them that this guy came to you and offered you this deal on the house that you could not turn down.
Yet another way is the what if scenario. In a friendly conversation just say hey what if by some weird chance I found someone else to take over the lease, how would you feel about that.
Maybe one of these off the top of my head ideas will work for you.
Thanks for your advise. It is very helpful. You have given me several ideas and options. I am going to consider each and decide which approach I am most comfortable with. At this point I am leaning toward the “tiny white lie”.
I have a course on the lease option technique which only mentions telling the seller about the sub-lease if they ask. I am not really comfortable with that method. I think we have to treat others the way we want to be treated so, I would be pretty mad if someone did that to me. So In the next day or two I will give him a call with the rest of the details. wish me luck.
dont most lease option contracts have something in them saying weather or not you can sub let the property or not? i think mine does.
i’ll have to check
Go to www.totalrealestatesolutions.com. Look at the bottom left where it says real estate forms. Make sure, though, that these forms are adjusted to fit your state. Hope this helps.
ThanksMax, the question I have is which form do I take to meet with my motivated seller, is it assignment contract , is that what i exchange the $1 for? at that point should i wait and is the next form the lease option agreement, with sublet clause, How long should i wait to do lease option form, until I get tenant buyer. I am trying to figure out the order of forms that i need to have when meeting with movitated seller, and what protection I should include as out clauses. then i can move on to the buyer. Am i better using some forms I already have or should i come up with my own modification of forms to protect me in the future.