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About Chris43

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  1. Just checking...would love to build relationships with others in the area doing CA's. If you are, anything I need to be particularly concerned about regarding my contracts and wording of contracts? Any additional paperwork needed? I plan on running everything by an attorney...but am just testing the waters with other investors before hand. Thanks, Chris
  2. Michael, I guess I do have another question... If you sign a lease w/ option with the seller and then aren't able to assign or find a new tenant buyer are you on the hook for the agreement and terms you signed with the seller? How do you avoid this? I must be missing the basics here. Chris
  3. Chris, when I was learning this biz I was taught to assign my deals to the t/b. It's a heck of a lot easier in my experience and so I still do that today. I'm sure there are some who prefer to assign the deal back to the seller and, in some cases it may be necessary. But for the most part, if you are doing a typical Cooperative Assignment, assigning to the t/b is the way to go, in my opinion. If you are doing a lease with option with a t/b, then you need to have that same type of agreement with the homeowner. If you are looking to have an option to purchase without a lease involved, then a straight option will suffice. From your post it sounds as if you are combining two types of lease purchase deals, making things more confusing for yourself and probably for anyone else involved in the deal. Thanks Michael, as always your input is appreciated!
  4. As most of you know by now from my two previous posts that I am new and am still learning about L/O and CA's. With that being said, I have a couple more questions: Assigning back to seller vs. buyer..... is there a benefit to one over the other? What are the steps with each and what forms do you use? Secondly, is it feasible to control the sellers property with a straight option for the period of time you are marketing for a TB or do you need to sign a lease and option agreement with the seller if you are assigning a lease with option to your TB? My idea is to purchase on straight option and assign to TB with new lease and option agreement with price and terms that seller has agreed upon or assign back to seller. Is this how you do it or am I over thinking this? Thanks in advance, Chris
  5. Another question... Lets say you sign you tenant buyer up with a purchase price of 200,000 after a 2 year L/O. In 2 years the house has depreciated 10-15%. Is the t/b still out the option consideration money if they choose not to take on a house that is worth less than what they agreed to? How do you handle this? Thanks again, Chris
  6. Thanks Michael, valid points and things for me to take into consideration. Love the site and look forward to being a part of its success. Thanks Chris
  7. Thanks Michael. Maybe I am looking at this wrong but seller mentioned that they would be ok with 10000 consideraton fee. Is it feasible to get this under contract between me an seller with zero option consideration find a tenant buyer that will put down 3.5% of $375,000 ( 13,125..if I am super lucky) and get a L/O worked out between us on sellers terms and then assign back to seller with $3,125 assignment fee? He gets his 10000 and I get my fee? I don't know, help me shoot holes through this... My concern is that I don't find a new t/b....am I on the hook with the seller with our L/O agreement?
  8. Hello Everyone, Introduction and questions... (a little wordy, sorry !) I am a new CPA investor who lives in Denver, CO. I have been reading the posts and lurking for a while but in the same time have been marketing for sellers, today I generated some interest. This guy owns a $375,000 home free and clear but is having a tough time selling it due to its location and due to the fact that it is essentially half of a high end duplex. The house has been on the market for a year, and is listed with a realtor ( ending soon ) to no avail. Its hard to comp due to the diversity of the area. I met with the seller, not super motivated as he owns the home free and clear, but there is enough motivation where I think I can help him somewhere and he doesn't mind being a landlord. I don't want to do a sandwich and just want to assign. Questions: 1.) Do I enter a full blown l/O with the seller and then assign my interest to my t/b or does the t/b sign a new contract with the seller on different terms? I don't want to be on the hook for a 18-24mth period if I can't find a t/b. How do you structure this? I want to be in and assign out ASAP without a liability to the seller if I can't find a t/b. 2.) He wants a 3-5% option consideration upfront, which I can work with BUT I don't want it coming out of my pocket. In addition I don't want to start making monthly payments after I sign with him, I want my t/b to do that. How do I avoid this while I am looking for a t/b for 4-6 weeks? How does it affect contract if I never find t/b? AM I on the hook until I find t/b? 3.) If I get house under contract with him, do you do a preliminary title search BEFORE you market for T/B? What does a prelim title search entail and any ideas on cost? I am really new but have always been one to dive in and just do it, but am uncertain on some aspects of CA still. Any help would be appreciated. Best Regards, Chris PS- Michael C , Adam King sent me here and told me to tell you high.
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