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Arcus

SLO Contract

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This is my first T/B to exercise their option. I am not sure how to do the sales contract. Do I put their total monthly rent credits and option consideration as their down payment? They have leased the house for 18 months, will there be any problems with using the above as a down payment? Any other comments or suggestions would be greatly appreciated.

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Arcus, first things first. It seems congratulations are in order! Hopefully you have a sizeable profit awaiting you on the backend for your troubles and patience.

Now, before you start playing with the numbers and paperwork, it's important to realize you are in no way the one who determines how the option money and the rent credits will be applied to this deal. What do you know about the buyer's lender? Said lender will have the say regarding rent credits and the like. And who is handling the closing? Attorney's office? Title company?

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Arcus, first things first.  It seems congratulations are in order!  Hopefully you have a sizeable profit awaiting you on the backend for your troubles and patience.

Now, before you start playing with the numbers and paperwork, it's important to realize you are in no way the one who determines how the option money and the rent credits will be applied to this deal.  What do you know about the buyer's lender?  Said lender will have the say regarding rent credits and the like. And who is handling the closing?  Attorney's office?  Title company?

Thanks Michael for the quick reply. The closing will be done at a title company. The T/b may be making arrangements to buy with cash (rich grandmother). We are in the early stages of negotiating. This is my first l/o. I have flipped a few properties so I am familiar with the double closing. I have waited a year and will make about 12,000 profit.

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Ahhh....wealthy grandma's. God bless 'em! ;) It should all work out fine, Arcus. My suggestion is to contact that title company, tell them what you are trying to accomplish, and get their take on how it will all go down. A phone call and some prep work now will go a long way to ensuring no tangles at the closing.

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