Posted by Anne-ND on July 13, 2001 at 06:21:40:
Marlon,
I find that sellers who admit that they want too much but want it anyway are major headaches to deal with. Just walk from this, there may be a little money to be made, but you’ve got a control freak on your hands. Remember, you’re in control of your deals or you don’t do them.
good luck
Anne
Cooperative Assignments? - Posted by Marlon(OH)
Posted by Marlon(OH) on July 13, 2001 at 01:21:35:
Have anyone here ever done a cooperative assignment l/o before? I talked to a guy who left me a message saying that he received a letter from me and wanted to do a l/o. When I called him back he said that he owned his home free and clear. He agreed to letting me subleasing his home but he wants the tenants to sent the payments to him and not me. Also, he wants me to pay $650 a month which is very high for a 2 bedroom in that area. He was the first to mention that $650 is too high but refuses to go any lower.
I plan on telling him to call me back if anything changes. But I was wondering if a cooperative assignment would work here. I would find the t/b and collect the option money and assign the contract to them and then I’ll be out of the picture.
I think the seller may go for this but I worried that if something ever went wrong that the t/b may try to come after me for the option money.
What do you think?
Thanks in advance,
Marlon(OH)
Re: A No Brainer - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on July 13, 2001 at 10:49:00:
You do all the work, and the property gets all the benefits, including getting all the money sent directly to him.
Lets see you lease from the owner, and if the tenent does not pay who will chase the money? (you).
If you do not pay the owner the (admittedly too high) rent, no doubt this will kill your L/O. So the owner will have the tenant and you will be out in the cold. Not a good business plan if you ask me.
If you do pay but the tenant does not pay this too high rent, then your cash is out in the cold.
My suggestion would be to dispose of this property owner, and go out and find a real deal that works. He is not motivated, and not realistic.
Move on, it’s a no brainer.