Extra Money From Your L/o

[LonnieWA 0]

Here is something that I have added to my L/O agreement. What I am trying to do here is get a free month from the seller. My agreement will start with the seller the same time my agreement strats with my buyer but the payments to my seller will start a month later therefore the total rent from the tenant will go staright into my pocket. The reason I am doing this is to get a decent amount of cash up front instead of the usual 2k down with the rest as a promise note. Please let me know what you think and if you think it is legal.

 

 

The said property, as described above, with all appurtenances, are hereby leased to the Tenant/Buyer for a term of _______ months commencing _______________________ 20______. Rent for the premises is payable in monthly installments of $____________, to be paid on or before the tenth day of the month for which rent is due. $____________________ of each rent payment shall be credited toward the purchase price of the property as additional option consideration. Tenant/Buyer may renew the Lease-Option Agreement under same conditions for an additional _______ terms by giving notice to the Landlord/Seller of its intent to renew this Lease-Option Agreement by mailing a written notice to the last provided address of the Landlord/Seller. Payments start date will be set when Tenant/Buyer procure a suitable subtenant or assignee. Payments start date will be 30 days after the commencement date of this agreement stated above in this same paragraph. Payments Start Date Is: _________________________________________________________.

[MichaelC 160]

Lonnie, I have a few comments, but I first need to know something. Is that paragraph in an agreement between you and the homeowner, or between you and a tenant/buyer?

[Guest Guest_Lonniewa_*]

Lonnie, I have a few comments, but I first need to know something.  Is that paragraph in an agreement between you and the homeowner, or between you and a tenant/buyer?

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It is between me and the seller.

 

Thanks,

[MichaelC 160]

As far as the legalities go, two parties may agree to anything as long as it isn't in violation of existing laws, local, state, or federal. So from a legal standpoint it seems to me you're well within your rights.

While I understand what you are doing, I can't help but think most homeowners who read that and understand it are not going to stand for it. Worse, those who don't understand are going to go with the old "I want my attorney to review this contract". And therein goes your deal.

What has been your experience with this to date?

[Guest Guest_LonnieWA_*]

I've never tried to get a month free but basically I will tell the sellers that in order for this to be profitable for me I need this month free. I will tell them I am marketing the property, guarantee rent, guarantee repairs, utilities, do evictions at my cost, recording fees, contract collection fees/escrow. If it stay a sticking point I tell them I would give the half of the first month rent that I receive from the tenants or may 200 bucks.

 

If that does not work I'll just do the deal the normal way.

 

Basically I'll be telling them the truth. I'll tell them that I wanted to be secure because of all that I am responsible for.

 

Thanks,

 

Lonnie Turner

WA. Branch