matrix 0 Report post Posted August 7, 2005 how do you get the back end profit thanks i know about front end Share this post Link to post Share on other sites
JerseyJeff 0 Report post Posted August 7, 2005 Let's say you set up a SLO with a seller with a purchase price of $300,000 and a rent payment of $2,000/month. Let's assume your agreement with the T/b is as follwos:Purchase price: $325,000Rent: $2,000/monthRent credit: 50%$5,000 received as option money. After a year the T'b decides to exercise the option to purchse. After the T/b has arranged financing to purchase the property, a closing date will be scheduled. You go to the closing with any/all contracts you had signed for this deal. Most likely a double close will occur (dictated by your state/county). You will sit with the seller and exercise your option to purchase the home for $300,000 using the T/b's financing. You will then sit with the T/b and they will exercise their option to purchase at $308,000 [$325,000 - $5,000(option) - $12,000(rent credit)]. You will receive a check for the difference ($8,000) from whoever is handling the close (title comapny). That's about it. Share this post Link to post Share on other sites
AmyB 0 Report post Posted August 10, 2005 Jeff, Do you record an affadavit to protect your 8k? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 11, 2005 Jeff, Do you record an affadavit to protect your 8k?<{POST_SNAPBACK}>I'm not Jeff, but I'll play him today...if you are in the deal for any length of time, a sandwich lease for example, you should definitely record a memo of option to protect your interest in the deal. Share this post Link to post Share on other sites