Posted by aaron on July 10, 2002 at 14:26:43:
I’m a beginning investor and I can only tell you what I’ve read. You can tell them that that’s fine. That they can buy you out for say $1,000.00. This way you still get some money. That’s it, plain and simple, hope this works.
Aaron
First deal? Help! - Posted by Tim
Posted by Tim on July 10, 2002 at 13:47:14:
I wanted to know if there is a way to accomodate a seller in a l/o who wants to keep their house open to sell. in other words they want to be able to take a contract whenever one is presented. Any solutions?
Re: First deal? Help! - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on July 10, 2002 at 16:25:37:
Purchase, Lease/Option, and Owner Fianancing are 3 different ways to buy.
If you purchase now, then you can sell how you want. But it doesn’t look like you are in a position to go that route.
Owner finance is another way, if the sellers are willing to do this. They can’t accept owner finance and also keep an option available to sell to another who comes along. Well they can, but that takes us off into another tangent.
Since they seem (you haven’t given us information on the willingness, eagerness, and motivation of the seller) to want their money now, an option seems to be the approach if the numbers work out.
If they have it for sale for $100k, and you think you can sell it for $150k; you could write an option to purchase the property within the next xx days for that $100k. If you decide not to purchase, no harm. In the option you could write a contingency to allow the sellers a way to either have you put up or shut up should they get another offer that comes in that gives them their cash they seek. In the meantime they are still marketing through whatever means they want and you are marketing trying to find a CASH buyer.
If the sellers do not want to sell on owner finance terms, and they don’t want a lease/option with purchase later; then an option to purchase with some future date will get you in as a principal and then you need to close the transaction. You can not market as a L/O or owner terms since you don’t have that capability with the option given to the seller. They want their money so you need someone who has the money to give it to them.
Correct me if I am wrong that the sellers will do a Lease/Option and/or a Owner Financed term situation. Without something like this where the seller is willing and flexible, you have to find a cash buyer with money or a lender ready to go forward.
Re: First deal? Help! - Posted by Stacy (AZ)
Posted by Stacy (AZ) on July 10, 2002 at 14:57:34:
I’m a little confused, so maybe you can post more details. I assume you want to sign a L/O agreement with the seller, and look for a tenant/buyer to move-in to the property (sandwich L/O). If this is correct, then I’d never let the seller continue to try to sell the property. A few things to be concerned about:
What if you spend money and time trying to locate a T/B, and then the property gets sold out from under you? Where’s your compensation for your efforts?
Suppose you find a T/B and sign them up. Then the seller sells the house out from under you. What happens to your T/B? Do they sue you for breach of contract?
Suppose the T/B moves in. Are they going to want strangers walking through “their” house while it’s being marketed by the seller?
Maybe you’d better explain what you’re asking.
If you get just an option on the house, this may be the way to accomodate the seller. Whoever finds a buyer first, wins.
Re: First deal? Help! - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on July 10, 2002 at 14:23:45:
Can you explain a little more of what you are trying to do? If I decipher it correctly, a seller wants to sell their house and want to keep their strategy open to the first one who can bring them cash or the best deal. You want to purchase on a L/O while taking into account that the owners would prefer to sell to someone now instead of a L/O for which your offer is based. Is this correct? If so, then it may be an opportunity to use only an option with no lease. This allows the seller to sell FSBO, use an agent, or sell to you with some form of option. If this is the direction you take, there is more to it than I am writing here since I am not sure what you are trying to do and what your exit strategy is and whether or not the seller’s concern is the purchase money now, or later, and would prefer not to have anyone living in their house until they ‘sell’. If you expand a little more of what this deal is entailing, I might be able to help in how to write something along this line.