buyandhold30

That certainly is a red flag. If you agreed to one thing and now the contract states something else, it is an issue that needs clarification immediately. And, yes, $25 rent credit is meaningless. You don't state what the rent is, but shoot for 50% and be willing to accept 25% if you really want this property. It isn't $500 per month. It's $500 per incident. And, yeah, I think that's high. All things are negotiable, and you should knock that down to $200 per repair. And keep in mind that any homeowner doing work in this regard is going to do it as inexpensively as possible. Meaning that corners may be cut in the process. We never know what's behind that sheetrock. A knowledgeable inspection of the work by someone you trust is a good idea before you sign on the dotted line. A clause stating that during the first 30 or 60 days of your tenancy, any repairs shall be the responsibility of the homeowner. In the event some really shoddy workmanship was performed, these flaws will often reveal themselves soon enough. I agree. That should read that you have the option to purchase at any time during the term of the lease agreement. A title search is a must for your protection in this deal. For around $100 it's cheap peace of mind. You want to verify ownership, existing liens, etc. The way that clause reads now you can really be screwed over royally. Impossible for me to opine about property values from where I sit. I know neither the property nor the neighborhood. You're a better judge of this than anyone else here. Before I even got to the bottom of your post I suspected this owner was an investor. Of course, she is, having purchased this just three months ago as a handyman with the intention of flipping it. Nothing wrong with this as that's why we all hang out here: to earn profits in real estate. Problem is, though, I'm viewing this whole deal as an investor also, and as such, my perspective is going to be different than the typical end buyer. One of the first things I noticed is that you are clearly a motivated buyer. And if I picked up on it over the internet, I assure you that Mrs. Trump over your way did, too. Without knowing for certain, I'm confident that she is making a tidy profit on this deal if you go ahead with those terms. Nothing wrong with that, but I think you can do much better. For example, why can't you go ahead and buy a similar property for $35-$40K, and make those repairs yourself? Then all that equity is your's. Or, if that isn't a possiblity, cut a better deal for yourself with this woman. And I would start with a contract that is a heck of a lot more kind to your position in the deal. Not meaning to rain on your parade, buyandhold. Just offering an opinion and looking out for the folks. <{POST_SNAPBACK}> Yes Michael this is exactly what I needed to hear. You better believe I will be disecting this information and putting it to good use. Will post back with results. Thanks for the assistance Michael Buy

Guys I need assistance from all the pros on this board. This is a option agreement I am about to enter with a seller in pa. This will be our(my fiance) home. I need help with making sure I'm not being raked over the coals here. SELLER OPTION TO PURCHASE REAL ESTATE THIS AGREEMENT made by and between ___________. (hereinafter called "Optionor") and ______________ and___, (hereinafter called "Optionee"). The masculine singular pronoun shall be used throughout this Agreement, regardless of the sex or number of parties. 1. OPTIONED PROPERTY: Optionor, in consideration of the payment of an option fee under this Option Agreement, and rents paid and faithful performance of Optionee under a Rental Agreement entered into between the parties on this date, hereby grants to Optionee the right and option to purchase the premises below at the termination of the Rental Agreement entered into this date for the terms and subject to the covenants and conditions hereinafter set forth, the following described property: residential property located at 5818 North 20th Street, Philadelphia, PA 19138. Together with all improvements thereon, all privileges, appurtenances, easements and all fixtures, presently situated in said building except the following: none. 2. TERM: The term of this Agreement shall be 24 months beginning on the first day of March, 2005 and ending on the last day of February 2007. 3. OPTION FEE: Optionee agrees to pay $4000.00 as a NON-REFUNDABLE FEE, as consideration for the Optionor to grant the Option to Optionee to purchase the above premises. Simultaneous with the execution of this Option Agreement the Optionee shall deposit the sum of $4000.00 with Optioner. If the Optionee maintains the premises in accordance with the rental agreement and pays the monthly rent on or before the first day of each month they receive a $25 credit, which shall be applied to the non-refundable option fee. 4. OPTION PRICE: The option price of the Property shall be determined as follows: The base price shall be $85,000.00. The Option Fee as provided in Paragraph 3 above shall be refunded to the Optionee to be used only as a down payment upon the purchase of the Property, as said Option Fee is NON-REFUNDABLE in the event that Optionee does not exercise the Option and purchase the Property. 5. REPAIRS AND MAINTENANCE: Optionee agrees to maintain the lawn, remove snow, repair and /or replace any and all facilities related to the premises, to provide ordinary and customary preventive maintenance, and to maintain the building in good to excellent condition throughout the Term of this Agreement. This includes all walks, drives, electrical, plumbing, bath and kitchen fixtures, appliances, roofing, painting, lawn, landscaping and all exterior and interior items or work required. The costs of such maintenance and repairs shall be allocated as follows: The costs of repairs, maintenance and improvements, which are less than or equal to $500.00 per repair shall be paid by Optionee. Optionor agrees to pay for fixing any roof leak, if Optionee immediately notifies Optionor of the roof leak. If Optionee does not notify Optionor immediately of the roof leak, the Optionee shall pay for fixing the roof and all resulting damage to the building, regardless of cost. The cost of repairs and maintenance in excess of $500.00 shall be shared equally by Optionor and Optionee, provided that Owner has approved of each expenditure in writing prior to the commencement of any work on the premises, and provided that the work is performed by a reputable contractor. Notwithstanding the above, the cost of all repairs required as a result of negligence by Optionee or his or her guests shall be paid in full by the Optionee. Optionee may only make improvements or modifications to the property upon written approval of the Optionor. Any unapproved improvement or modifications to the property must be removed at Optionee expense within seven (7) days of written notice to Optionee by Optionor. 6. TERMS OF THE OPTION: Provided the Optionee has fully paid all the sums due and has performed all other covenants under the Rental Agreement of the same date, and has paid the full Option Price in Paragraph 2, the Optionee may exercise the option to purchase after one year by giving the Optionor sixty (60) days written notice of their intention to exercise the Option. Upon exercise the Optionee agrees to cooperate with the Optionor in affecting a Internal Revenue Code Section 1031 exchange, at no cost to the Optionee. Optionee will arrange their own financing and pay all closing costs connected with the transfer of the property and obtaining the loan, so that the sale or exchange can be completed in sixty (60) days of the exercise of the option. Optionor agrees to deliver a good and sufficient General Warranty Deed conveying a marketable title to said property to the Optionee. 7. BINDING EFFECT: This Option and the agreements contained herein shall be binding upon inure to the benefit of heirs, executors, administrators, successors and assigns of the respective parties. 8. DISCLOSURES: Optionee acknowledges receipt of the EPA "Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards" statement, and the EPA "Protect Your Family From Lead In Your Home" booklet. and understands their contents. 9. MISCELLANEOUS: Optionee agrees that they have examined the title to the Property and found no errors in the title and hereby accepts all assessments and encumbrances upon the property. 10. APPLICABLE LAW: This agreement shall be interpreted according to the Laws of the State of Pennsylvania. IN WITNESS WHEREOF, Optionor and Optionee have executed this agreement on the ____ day of February, 2005. _________________________________ OPTIONOR ____________________________________ OPTIONEE __________________________________ ____________________________________ OPTIONEE Questions: Clause3 - I had verbally agreed to an option of $3K over the phone, now I notice the option is up to $4K. Should I be concern here? I intend to counter with $1K in option and the rest in prepaid rent whether the option is $3or4K. Also is it me or is this rent credit extremely low. I'm thinking of countering with $250 rent credit. Clause 5 - Keeping in mind that the seller is totally redoing the house. I would have preferred to step in and do the repairs but what the hell...lol She is doing a bang up job. I mean REALLY nice work. That being said why on earth is the repair skewed to us being liable for the first $500 per month. I mean with all the work she has put in should this not be less. I mean I figured around $300 per month was reasonable. Any thoughts Clause 6 - This has be bothered. We should be in a good position to take this house over before 12 months. Atleast that was the plan. Our credit is not the isssue just cashfow and the fact that honey is just returning to the work force now that our daughter is one year old 8) . Maybe I'm fusssing over nothing but any pointers here? Clause 9 - I have yet to get my hands on title yet. Had no time. We are all the way in NYC, the house is in PA. What are your thoughts on this clause? Also she is asking $85K. I really dont have a problem with the price because of all the work she has done to the property. I wish I had photos. New roof, windows, new bath, kitchen with all appliances including dishwasher. Sanding and refinishing all hardwood floors, complete paint job, Security system she will pay for. ohh by the way this is a single fam. 3BR/1BTh. The bedroom sizes are decent considering this is philly. Those of you familiar with philly will know what I mean..lol I believe their is a new boiler system. Will need to doublecheck this. I know she redid the base heater system. Now that being said she bought the proerty in 11/04 for 34K and given the work is asking $85K what do you guys think? Asking prices right now for prop in the area are only as high as $78K the best comps I could get are as follows 5915 N. 21st St. Sold Price:$58,000 Listed Price:$62,900 Bedrooms:3 Bathrooms:1 Square Footage:1120 Year Built:1925 Comments:1-car attached garage. Lot 15 x 65. Days on the Market (DOM) 77. 5810 N. Lambert St. Sold Price:$66,847 Listed Price:$64,900 Bedrooms:3 Bathrooms:1 Square Footage:960 Year Built:1930 Comments:$4000 credit from Seller to Buyer. Lot 16 x 62. DOM 80. 5520 Blakemore St. Sold Price:$67,000 Listed Price:$74,900 Bedrooms:3 Bathrooms:1 Square Footage:1010 Year Built:1925 Comments:$4020 credit from Seller to Buyer. Lot 14 x 54. DOM 37. 5813 Anderson St. Sold Price:$70,000 Listed Price:$68,900 Bedrooms:3 Bathrooms:1 Square Footage:1170 Year Built:1930 Comments:$2100 credit from Seller to Buyer. 1-car attached garage. Lot 18 x 100. DOM 10. I AM ASSUMING YOU PURCHASED THE PROPERTY TO RE-SELL. Your property is like a Twin in a land of Rowhouses, which adds to value. Your house interior is 20% larger than the rest, too. All of these things will help because this particular section of 19138 (E. Germantown) does not have a high demand schedule: many of the properties listed for sale actually expire without selling. I will be happy to come through the property with you and advise you about what improvements should be made. Wow I did not realize this would get so long...I apologize to all. Well I await any and all advice with great anticipation. Thanks Buy

I would need a lot more information on these properties to help me decide. Thanks. Exact address, # of BR, BTH etc. Parking on or off street. Just for starters.

Relocating to Philadelphia and looking for a rent to own/lease option on a single family. Looking for monthly rent up to $800. Option available $1-4K. Would prefer at least 2yrs lease period. Open to surrounding areas. Thanks Anthony