L/O with sublet to owner?! - Posted by NM Tampa

Real Estate Investing Real Estate Law
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Posted by JHyre in Ohio on November 08, 2002 at 18:07:16:

Legal, probably. Smart, probably not. The “seller” or “lessor” will resent any profit that you make, and may not pay if their credit is problematic. With that said, Joe Kaiser has done similar deals. If you do it, make sure that the paperwork is FLAWLESS and that they understand quite clearly that nonpayment means EVICTION. In fact, I’d want OWNERSHIP of the house, not a master lease…if they don’t pay, they are GONE. Of course, I’m loathe to lease to the “seller” even if I own the house.

John Hyre

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L/O with sublet to owner?! - Posted by NM Tampa

Posted by NM Tampa on November 07, 2002 at 15:55:53:

I recently had a “fellow investor” suggest that I offer my seller a lease option agreement in which I will sublet the house that he owns back to him so that he could stay in the house. So, he would actually own the house and lease the house at the same time. Does this sound “smart” “possible” or “legal”?
Any comments will be greatly appreciated.