I’m new to rei and I’m trying to get started with my first deal asap…I had a question about wholesaling lease options…when I come to an agreement with the buyer, how exactly do I assign the option back to the seller? Which contract would I use?
What does “wholesaling lease options” mean?
What do you mean by “assign the option back to the seller”?
I’m talking about cooperative lease options…
You won’t be assigning the option to the seller, you’ll be assigning it to the tenant/buyer. Using an Assignment Of Agreement form.
Am I misunderstanding what you’re asking?
So the Assignment of Agreement form basically takes me out of the agreement that I had with the seller? The deal will then between the T/B and the seller? Is that correct?
Evidently, you’re attempting to broker a lease option deal, is that correct?
You’re asking questions here with the assumption that anyone knows what you’re attempting to accomplish. However, I give it a stab, since I’m waiting for a phone call… :cool
If you don’t intend on staying with the transaction, then you’ll simply have an agreement with the seller that you’ll find him a tenant buyer. After that, you collect your fee and your gone.
There’s no extra paperwork for that, since you’re not on the lease agreement.
It sounds to me like you’re trying to “home depot” this transaction without any handle on the mechanics of the transaction. This is gonna be a bumpy road for you. Not that it can’t be done, but why not spend a little money learning how to do all this more elegantly?
I admire your pluck otherwise, but man, you’re gonna beat your head against the wall with your current approach. Just saying. There’s a TON of excellent lease option guru’s courses here, not to mention my favorite toddtoback.com which one of the resident gurus recommends.
I wish I could be more help here.
You got it…exactly right. You or your entity is shown as the tenant/buyer on the lease & option, and you’ll sell your interest to the real tenant/buyer by using the assignment.
Check out the Naked Investor forum for more info on the mechanics of this transaction.
The strategy is sound. It is called Cooperative Assignment. I have done 3 or 4 myself.
Thanks javipa and nsu1997 for the answers…I understand it’s going to be a bumpy road without really knowing what’s going on but I gotta try to piece as much together before I spend money on one of the gurus…have you heard or seen Adam King’s Cooperative Purchase System? Seems like the way to go in terms of learning a system.
Cooperative assignments aren’t a bumpy road at all…they’re very simple, clear transactions and are probably the easiest way I know of to make money in real estate.
Never heard of Adam King til you just mentioned him. I have the Naked Investor manual and it’s very clear and simple to understand. For $47 or $97 I can’t see how you can go wrong either way. Of course, I’m assuming you will be one of the few who actually put a system in drive and give it some gas.
Good luck!
I am an investor and my time period is 6 months and I know it is quite difficult to maintain this business. There are many resources and Adam King is one of them. One should known to this better before thing about making an investment.
Arik, as has already been said, there isn’t an easier way to invest in real estate than with lease options, particularly with Cooperative Assignments. But if you aren’t sure what you’re doing you’re better off doing nothing until you do know what you’re doing.
I’m not familiar with King’s stuff, but I do know Carbonare’s over at The Naked Investor. He taught me this strategy and was doing CAs before most people even heard about them.
I’d start over there. Good luck.