I’ve got a guy that wants to buy one of my houses but he needs a little credit repair first. I thought that I might rent it to him for 12 months but separately sell him an option to purchase the property at an agreed upon date in the future. I think he will go for it. My only problem is that I can’t find an option contract form. Does anyone know where I can find one?
Thanks in advance
Hi, I’m a paralegal sciences student. Could you send me an example of an Option to Purchase Contract also? I have an assignment to draft a contract and I’d like to have a good example to guide me if I need it. Thank you very much. -Christina Arvin
You need a powerful contract that protects you from the deal you are planning to make.
Here are some tips and suggestions to protect you:
Option deposit: Get enough non refundable option deposit.
Rent credit: Offer the tenant/buyer some rent credit. Make sure your contract states that if they don’t pay on the first of every month they loose their credit! This encourages on time payment.
Generic contracts: Do not use generic contracts. It’s like asking a dentist to sell you a “do it yourself tooth removal kit”.
Two contracts: You need a lease contract and an option to purchase contract.
Assign clause: Make sure your contracts state that they can not transfer, sell, assign or sublet the property.
My contracts are powerful and place the strength where it needs it. They are not for sale just in case. ;D
Hope that helps!
Diana Fontanez
Hi,
I appreciate the information Diana. Do you or anyone else have any suggestions for where we can actually find those contracts. I see they sell some on this site, however I’m not sure how good they are. If anyone can imput that would be great. Would you suggest having an attorney if you plan to sell, buy or option without a realtor?
Thank you
Hi there,
Yes, any contract you get (generic or not) should be reviewed by a real estate attorney. Make sure that every page is initialed by you and tenant/buyer. Just add another layer of protection in case they add another page without your consent.
Would you suggest having an attorney if you plan to sell, buy or option without a realtor?
A real estate attorney is another of the many tools you need to run a successful Lease Purchase Business.
Another tip: If its your home or subletting it, have a clause that states that the contract can not be assigned or sold to a third party.
If you are the investor, have the clause that lets you assign, sublet, transfer and sell the contract.
I have 8 specific contracts that protect me on a deal depending on the hat that i am wearing. Also, i ment to say that my contracts were not for free. ;D
To your sucess,
Diana Fontanez
Seems like everyone wants to charge for things these days.
Here’s an example (free)
http://www.buyincomeproperties.com/freeforms/option_agreement_for_purchase_of_real_estate.html
Generic contracts is like asking your dentist for a to do at home tooth removal kit.
I spent the last couple of years consulting in Puerto Rico and the US, doing deals, making mistakes, loosing thousands of dollars, and long sleepless nights. Thank god my titanic days are over!
My knowledge is a powerful tool to help others.
Your knowledge, time, and energy are a valuable commodity, you dont have to give them away!!!
To your success,
Diana Fontanez
Good Morning,
I have completed 25 Lease Option to Purchase this year alone and have been investing for just over 14 years. Like the other respondent, I feel my exeperience and time is valuable…however…I am where I am today because others with valuable experience shared with me when I needed it.
With that being said, if you will get me your fax number I will be happy to send you all the paperwork I use when completing a lease option. These are not generic and could not be found in an office supply store. BUT, I HAVE TO SUGGEST YOU HAVE YOUR LAWYER OR REAL ESTATE AGENT LOOK THESE OVER BEFORE USEING THEM.
Enjoy your day,
Ray
Your a good man Ray! :bigthumbup:
Ray,
Would you be so kind to fax another desparate landlord a copy of your lease options.
Gratefully,
Bill Gaestel
In the interest of not bugging and using up all of Rays kindness with the Purchase Option contract would you be so kind as to forward me a copy as well. Thansk Bill, I would greatly appreciate it.
Sincerely,
Steve PIttman