To the best of my knowledge, what you are talking about is basically the assignment of a lease / option for exchange of a fee ($10,000 for example).
#1. You must have an assignment clause within your lease / option agreement allowing you to transfer your rights in the Lease / Option / Property.
#2. You should have a document drawn up, or obtain an assignment document. (There may be one available on Bill Bronchick’s site (Legal Wiz.com).
#3. Make sure that your seller and your buyer release you from any liability pertaining to the property, the transaction, etc. This is done by way of inserting a release clause.
Hope I haven’t added more cob webbs to the one’s already there!
One approach to L/O is assigning the contract to the prospective tenant buyer. If you want to get in and get out quickly and have a prospective tenant buyer you can let him beat you down all the way to assigning him your option for as much or as little as you agree on. No more worries or hassles then. You can even create a note and have him make payments to you.
To sell to someone else after the new tenant buyer occupies the place may be more difficult. Maybe only because I’ve never tried to do it. You have allready collected the option money and all you are selling is the positive cash flow and the possible future deal. If there is little equity or the buyer has a small amount into the property there is more risk for the potential buyer of your contracts.
