mekanic13 0 Report post Posted March 16, 2009 I’m working on a CA deal and I’ve got a couple of questions regarding the paperwork. On the Short Offer form, item #5 is the same as the option period you’re working out with the T/B? Item #6 is the token payment of $1.00 to the seller? What is #9 used for? Is this to allow myself time to find the T/B? Looking at the residential agreement, how do I fill in #1 without the T/B yet? I’m assuming that this and the option to purchase agreement are filled out with the seller before I start to market the property. Thanks in advance. Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 16, 2009 On the Short Offer form, item #5 is the same as the option period you’re working out with the T/B?Yes. The option period will coincide with the lease period, unless you have made an exception for a particular reason. Item #6 is the token payment of $1.00 to the seller?Correct again! On your way to being a Slumdog Millionaire. . . What is #9 used for? Is this to allow myself time to find the T/B?That is so the homeowner doesn't sit on the couch and twittle their thumbs while pondering your offer. Or, worse, shop it around. Give them 24 hours from when they receive the offer until it expires. That's plenty of time for anyone who is serious. Looking at the residential agreement, how do I fill in #1 without the T/B yet? I’m assuming that this and the option to purchase agreement are filled out with the seller before I start to market the property.Mike, your name or your company name goes on the lease and the option agreements. Remember, you are a principal in the deal by doing the paperwork this way. Then, when you find your t/b you wrap it all up by assigning the deal. Share this post Link to post Share on other sites
mekanic13 0 Report post Posted March 16, 2009 Got it. One more question. For the beginning and ending of the option period, can we put TBD or To BE Determined there, or are we actually putting in a date for some time in the future? Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 17, 2009 Mike, I'm not sure I understand your last question. The dates of the lease agreement and the option agreement should coincide, and need to be noted on the paperwork. Is that what you're asking? Share this post Link to post Share on other sites
mekanic13 0 Report post Posted March 18, 2009 Let me try again. In the Residential Lease Agreement as well as the Short Offer form, there is a place to put the beginning and ending of the lease period. If you don't have your T/B yet, what do I put in here for the date? Thanks for your help. Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 18, 2009 Your start date will be based on your estimation of when you expect to be able to find a t/b to fill the vacany. For example, if I am signing up a CA with a homeowner today, I would probably figure on a starting date of May 1, possibly even June 1. If someone comes along and wants the property sooner, the homeowner won't complain and you can just change that date. If the start date is fast approaching and you are unable to find someone, you have the right to cancel at anytime, or you can ask the homeowner for an extension. Share this post Link to post Share on other sites
mekanic13 0 Report post Posted March 19, 2009 Ok. That makes sense and that is exactly what I did. Looks like I may have my first CA shortly, then I start marketing for a T/B. Thanks again for the help.Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 19, 2009 Your welcome, Mike. Good luck closing the deal with the homeowner. In the meantime, start working on additional deals. Keep the pipeline flowing. Share this post Link to post Share on other sites
nsu1997 0 Report post Posted April 15, 2009 Item #6 is the token payment of $1.00 to the seller?Correct again! On your way to being a Slumdog Millionaire. . . So glad I read this. I've been doing it wrong all this time. I have been putting the full option fee on #6! Hope this doesn't come back to bite me. Speaking of this Michael, is the token $1 option consideration also what we put at #3 on the Option to Purchase agreement for CAs? And our full option fee only goes on the Assignment? Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 17, 2009 So glad I read this. I've been doing it wrong all this time. I have been putting the full option fee on #6! Hope this doesn't come back to bite me. Speaking of this Michael, is the token $1 option consideration also what we put at #3 on the Option to Purchase agreement for CAs? And our full option fee only goes on the Assignment?Yes. Again, the Option to Purchase Agreement is between you and the homeowner. So Paragraph 3 reflects the option money that you put down, not the t/b.Then, when the t/b puts down their option consideration/assignment fee, this amount is noted on the CA Assignment Agreement. Share this post Link to post Share on other sites
