The benefits of explaining the lease purchase tech

[verbatim 1]

hey MikeC [and all others]

 

I ask this because i have read some of your posts & you say that you will sometimes get control of a property and assign your interest to the new T/B.

 

When you know that will be your strategy, [and the seller has already agreed to sell it to you on terms as oppossed to all cash] do you go through all the advantages of a lease purchase program? or do you just say 'ok, you'll sell on terms - i can offer you $90k at $xxx per month for 24 months' .... without saying much more?

 

Just curious?

 

 

P.S. - i know it would be to ones advantage to explain in detail if assigning back to the seller, because they need to know exactly whats happening.

Edited January 19, 2004 by verbatim

[MichaelC 160]

verbatim, bear with me here because I'm not sure I understand your question.

If the seller has agreed to finance the deal, you probably won't be doing a lease purchase then. Right? You'll be buying the property instead. I'm obviously misunderstanding something, so clue me in, amigo.

[verbatim 1]

I should have probably said " if the seller agrees to sell it to you on terms."

 

Meaning that they do not have to be cashed out now & can hold out for the balance later.

 

The 'terms' in this scenario would be the monthly payments mirroring or a little above their mortgage payments, with a purchase price below FMV [could be FMV if we are going to assign the l/o.]

 

sorry for the confusion

[MichaelC 160]

In the scenario you describe, I don't think it would be necessary to get into lease purchasing. If you're buying for cash or on terms, the lease option strategy wouldn't be a part of the picture. So, why muddy the waters and bring it up?

[verbatim 1]

Mike,

 

I believe i may be asking the question incorrectly. What i mean to say is:

 

you talk to a seller with no equity. they say 'no, it does not have to be an all cash offer sir, i am open to suggestions. what did you have in mind?'

 

Do you then go into the many benefits of the l/o program, or do you just say 'ok i am looking to lease a home for 2 years at $xxx per month.'

 

then you find a t/b, get the downpayment, and assign your interest to them?

 

Just curious to know how in depth you get with the original seller when your intention is to assign your interest to the t/b?

 

Any assistance you can offer would be greatly appreciated,

 

Verbatim

[MichaelC 160]

In other words, am I explaining to the homeowner that I will/may be assigning my position in the deal to a third party? Well, I try not to hit them over the head with that because it is sure to frighten them.

If and when I do assign a deal, I alert the homeowner to what has happened and will sugarcoat it as necessary. Usually I will explain it by saying that I was forced to do so because of market conditions or that I misjudged the market. Then, I will reassure them of the sincerity of the assignee and their good intent in the deal. This is usually sufficient.

If I still have not answered your question, verbatim, PM me your phone number and a time to call. We'll work it out over the phone .