I have a property that I was going to do a lease with option and assign it to a buyer. This was blocked by the association because they have a no leasing bylaw. I talked to the attorney and a sub 2 would be legal with the bylaws. The current mortgage is $120,000 and my option was to buy for $127,000. How do I write up the sub 2 to include this $7000 that would be going to the seller.
What bylaws, what association? Whats the place worth? herbster
Herbster it is a townhome that has association rules. Through my research it is worth $155,000. I just do not know how to write up the contract on the sub2 to get the sellers the money that we had agreed upon with the lease option. I have a buyer to assign the contract to.
Give the sellers a note for the 7 ,000.0 with a short term
As you say you have a end buyer all ready ?
What kind of a fee are you charging the end buyer to take over the contract ?
As you should be charging them something
And just like that your problem could be solved ?
I am getting a $10,000 assignment fee. How do I create the note? Would I create the note for my new buyer?
MAKE a note with your seller for the 7 ,000. with a pay date with in 30 days
You can put a % to it or not but still make it a simple note
And make it to the sellers + to do the note say if you take this note for the 7,000.00 i will pay you 7,500.00 or something like this
And when your end buyer pays you take out the sellers money
Yes it will cut a bit in to your pocket but it gets the deal done
Or you could enter into a Lease and an Option Agreement with the seller. Assign the agreements to the end buyer while pocketing the 10K assignment fee(option consideration) then the seller would get their monies when the end buyer exersizes the option if you sold the property for 144K. There are many ways to work out this scenario. Herbster
I dislike strict HOA rules like that. I do understand that it helps with higher end
properties and support that, however not for median price ranged properties.
So with the HOA rules, you will need to basically have the seller owner finance the
buyer to meet the HOA requirements. You simply get a signed contract with the seller
and yourself with all of the details of the transaction.
Assign your contract to your end buyer and give the contract as well as the assignment
form to your title company and they will handle everything from there.
If you’re doing a kitchen table closing (I’m assuming you know how to do one properly),
you will simply assign your contract to the buyer AFTER you have received your fee…