Lease Option WannaBe - Posted by EricD

Posted by Jim IL on June 27, 2001 at 15:11:21:

Eric,
Before you worry about this too much, make some calls locally.
Call some title companies and attorney’s and ask if they can do a “simultaneous close” for you?
Some will, and some will not.
You may have to interview a few different attorney’s and explain what it is that you are hiring them to do, but I’m sure you’ll find a good one.
Thankfully, I have an attorney here who knows what he is doing, and is affiliated with a local title company.
We are closing a L/O deal this Friday, and the lender for my buyers has a title seasoning requirement.
So, my attorney is simply having my buyer purchase the home directly from my seller.
There will be a line on the HUD-1 statement which is my “Fee” for my profit.
This actually works better, since there will now only be one closing, meaning less costs.

I’ve closed quite a few of these, and done them like the one mentioned above, and with a simultaneous close as well.
The lender is the one you need to look at.
In fact, while I’m thinking about it, contact some mortgage brokers and see who has lenders who do not care about title seasoning.
This way you can direct your buyers to them.
I tell my broker, "look, you find me a good lender, get my deals closed, and I’ll send ALL my buyers to you for loans."
It works for me.

HTH,
Jim IL

Lease Option WannaBe - Posted by EricD

Posted by EricD on June 26, 2001 at 21:39:29:

Hi all, I have been researching REI for some time and am very close to feeling comfortable to search out that first deal. I came to the conclusion that L/O would be a good way for me to get started. I purchased a couple courses and feel very good about how it all works. I have recently read some issues about having trouble with the double close at the option time. Either with title companies or mortage companies that won’t borrow to the T/B since they would be writing a check to someone that isn’t the owner of the property. This has caused my confidence in the L/O to faulter and would like any input on the subject that any of you might have. Please feel free to e-mail me or reply to this post. Thanks a ton in advance.

Eric.