Joseph44 0 Report post Posted May 19, 2006 I have a possible deal with a seller out of state. First time doing out of state deal. My contract covers about everything except, (this was never an issue till now), utilities. He wants me to take care of the lawn and pay electric bills. I will have an option on the property for 4 months. My question: should I agree to this? In my contract I have Lessee is respnsible for payment of all Utilities. I don't want to pay anything, only a few dollars to seal the deal. Or should I add this to the addendum that seller is responsible for utilities. Everyone's thoughts, please. I need this asap!! Thanks everyone and have a great day!! Share this post Link to post Share on other sites
Craig 0 Report post Posted May 19, 2006 Do you have a pure option or a Lease to Purchase Option? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 19, 2006 Joseph, I'm confused. The answer to your question depends upon the type of deal you are structuring, and your position in it. Can you clarify, please? Share this post Link to post Share on other sites
Joseph44 0 Report post Posted May 19, 2006 Hi Craig, Thanks for the reply answer to your question:I have a possible Leaseoption.Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 19, 2006 Hi Craig, Thanks for the reply answer to your question:I have a possible Leaseoption.ThanksA lease with an option? Are you in the middle of the deal, with the right to assign, sublet, etc? And, why only four months?? Share this post Link to post Share on other sites
Joseph44 0 Report post Posted May 20, 2006 Hi Michael C, Answer to your question:Would only go 1-4 months to find aten/buyer.This will be a sandwhich l/o with the right to assign or subletthe home is brand new (he speculated on it).homes in area selling for around $350,000-400,000.Our purchase price is $325,000 I plan on a$355,000 cash or a l/o of $368,300.I'm getting of track should I pay utilities and services.I think this will be interesting there were a lot ofspeculators and there are quit a few homes for sale all on same block.I would realy like some thoughts on this I told him I would fill out the contract as far as I can he will fill in prop/info and send it this wk/nd.Thanks everyone and have a great wk/nd. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 20, 2006 I wouldn't touch this deal. A sandwich lease with a max of four months is going to have zero appeal for any prospective tenant/buyers. I just don't see a market for it, and I don't think you'll be able to move it as a result. Sounds to me like the owner wants it all, and at your expense and risk. Share this post Link to post Share on other sites
Joseph44 0 Report post Posted May 21, 2006 Hi Michael, Michael would you please explain your reasonning for not doing this deal?If I can't get a ten/buyer in a 120 days 4-months he gets the home back,but thats not what I want.I have till Sunday evening to sendthis paper work to him.If you can give me an alternitive to my above please don't hesitate.Thanks Michael have a great wk/nd!! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 21, 2006 Michael would you please explain your reasonning for not doing this deal?Sure. What tenant/buyer is going to do a deal that requires putting down nonrefundable option money that will be lost if they don't exercise that option within a four month time frame? Just about none, in my experience. Share this post Link to post Share on other sites
rpoissa 0 Report post Posted May 21, 2006 Hold on, lets clarify something here. Is ita) 1-4 months to find a TBor 1-4 months to find a TB AND for the TB to actually buy the house outright? If you find a TB in month 4, does the TB have to close in month 4, or can he rent for a year and then close? Share this post Link to post Share on other sites
Joseph44 0 Report post Posted May 22, 2006 Michael C & RobP, There is a shot circut here:I have 120-4months to locate a ten/buyer.I have a 3yr/option with 3-12month automatic extensions.the buyer does not have to purchase in 4 months.I'll market 2 ways $355,900 all cash or $368,300 on a l/o.Thanks I hope we are on the same page now,I will fax this agreement tonight.The only change I willmake in the contract is lessor agrees to pay all utilities and monthly rent for 3-6 months while ten/buyer is located.Thanks again and for the great responce I really appreciate the help.I'll let you know if it flies.Have a great wk!! Share this post Link to post Share on other sites
TrueHardMoneyLender 0 Report post Posted May 23, 2006 He wants me to take care of the lawn and pay electric bills. I will have an option on the property for 4 months. My question: should I agree to this? I would say that it depends on the numbers. How much will it cost over the period of time you are likely to pay? Do you have confidence that you will recover that amount when you find a T/B? If so and you feel the profit margin is there consider agreeing to paying. Maybe reduce the price by $1,000 or what ever the estimated costs are for the utilities and the landscaping. On a different level why does it matter if you put in zero cash or some cash? It is the return and the time to earn the return that should drive the decision to even go forward. If you walk from the deal because you do not want to pay the utilities but that means walking from a clear upside within 4 months I would say you have your logic backwards. If you are really not confident of finding a T/B then maybe that is an indication that the deal is not a good one in the first place independent of the negotiation point. Share this post Link to post Share on other sites
Joseph44 0 Report post Posted May 23, 2006 Hi,H/M/L and wellcome, No I plan on doing this if accepted.I sent contract to himSunday nite.Question never was asked before about utilities.Thanks for the reply and answer.Have a great wk!! Share this post Link to post Share on other sites
Joseph44 0 Report post Posted May 31, 2006 Hi Everyone, Just to update everybody:I faxed contract to seller on 5/27 he emails me he has a potential buyer?????He said they close on theirhome 6/28 he said if deal falls through he would contact me and runwith the l/o offer I submitted to him.We shall see!!!!Thanks for all thehelp and all have a great day!!! Share this post Link to post Share on other sites