Posted by Brent_IL on January 03, 2003 at 24:03:34:
1 - Stop sending emails. After the seller expresses interest, you will have to come up with an offer. An offer is a legally-binding contract when accepted. Entering into a contract without understanding the terms of the agreement will lead to financial failure and, perhaps, civil penalties.
2 - I searched for “lease option” in the archives. I got 2,452 hits. Read the info and then ask question to clarify.
3 - I’m pretty sure that I’ve read several hundred posts by Johnboy answering these questions. It might be a good place to start.
4 - Don’t get discouraged. CRE investment is a path to financial success that is available to almost anyone. It’s just not easy or quick.
Clarity for Lease Option Leads??!!! - Posted by Levi (CT)
Posted by Levi (CT) on January 02, 2003 at 23:07:54:
I used Larry Bell’s technique: Sending e-mail letters of intent to FSBO’s that advertise on the internet.
(Thanks Larry!) I have about five leads lined up this week. I downloaded a lease agreement from www.legalwiz.com. But I am still not clear on the ins and outs of a lease option!
I know the deed stays with the seller, I know there must be a portion of the monthly payment that goes toward my purchasing the property, I know I must put a “right to sublease” in the contract.
But do we draw up different payment arrangements, or work with the existing mortgage?
What would be a “fair” interest rate, if any?
Am I locked into the agreement until the mortgage is paid off?
What are the benefits for the seller to go L/O?
All help and answers on this matter will be greatly appreciated!!!