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herbdalyjr

C0-Op Assignments/paperwork

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Michael,

I wanted to ask you with your co-op-assignments when doing the lease agreement with the seller

there are things you won't know until you find an end buyer. Example occupants, vehicles, etc.

do those blanks have to be filled in or can they be left open?

 

And on the option agreement the non refundable option deposit, rent credits, total purchase price

unless they are fixed up front, there again there is no way of knowing what the end buyer is willing

to put down how much he expects as a credit, and what to build into the purchase price so the seller

can absorb it.? How is that handled?

 

Unless the paperwork between you and the seller is drawn up after all the parameters with the end buyer

have been negotiated. I was a little unclear on the process on the paperwork.

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I think Michael is rummaging through the brothels of Reno...

 

But here's what I do...I just leave those blank until I find a T/B.

Just explain to the owner that even though you don't know the exact, final

figures and they may change, their net selling price will remain the same.

 

Just make sure the monthly rent is filled in, the lease term, and

their net selling price is met. Use figures on what you're planning to get from

the OC and rent credits and adjust them as needed.

If a T/B is putting down less than expected, then the seller will net more

when the sale takes place. I'm sure they won't mind this.

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I think Michael is rummaging through the brothels of Reno...

 

But here's what I do...I just leave those blank until I find a T/B.

Just explain to the owner that even though you don't know the exact, final

figures and they may change, their net selling price will remain the same.

 

Just make sure the monthly rent is filled in, the lease term, and

their net selling price is met. Use figures on what you're planning to get from

the OC and rent credits and adjust them as needed.

If a T/B is putting down less than expected, then the seller will net more

when the sale takes place. I'm sure they won't mind this.

 

 

hey jason,

I was wondering if you could use a "letter of intent" with the seller with the PRICE,TERM,RENT

and when you find the end buyer write up a lease with option agreement between end buyer

and the seller and just assign your letter of intent for your % of the non refundable option deposit. of

course it would still be credited if option was exercised?

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Sure can.

I haven't, as I have yet to come across a situation

needing the letter of intent.

 

I know Michael and others here use the Short Offer letter & form

with success.

 

Do you have his course?

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I have the naked investor course, but I don't remember seeing

any short offer and letter in the course I received. it does have

the other contracts. Is their a place where they can be downloaded?

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They should've been emailed out to you when you first ordered the

course.

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Back from Reno and just now recuperating from the red eye flight back home. Let's just say what happens in Reno stays in Reno. . .

Herb, the CA Residential Lease Agreement and the Option to Purchase Agreement are completed between you and the homeowner. And you're right, certain bits of info are left blank. Such as the specific occupants and vehicles. I complete those when we have settled on the t/b. None are critical to the completion of the deal at the time it is drawn up.

As for the Option to Purchase Agreement, understand that is between you and the homeowner. So the option consideration, for example, won't reflect the option money you collect from the t/b but, rather, the dollar or two you put down to make the option agreement binding. You wrap it up with the CA Assignment of Agreement.

Also, I checked my records, Herb, and I did send you the electronic version of all the paperwork back when you purchased the manual. If you need them resent, just PM me your email address and I'll take care of it.

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I think Michael is rummaging through the brothels of Reno...

 

But here's what I do...I just leave those blank until I find a T/B.

Just explain to the owner that even though you don't know the exact, final

figures and they may change, their net selling price will remain the same.

 

Just make sure the monthly rent is filled in, the lease term, and

their net selling price is met. Use figures on what you're planning to get from

the OC and rent credits and adjust them as needed.

If a T/B is putting down less than expected, then the seller will net more

when the sale takes place. I'm sure they won't mind this.

 

hey jason,

I was wondering if you could use a "letter of intent" with the seller with the PRICE,TERM,RENT

and when you find the end buyer write up a lease with option agreement between end buyer

and the seller and just assign your letter of intent for your % of the non refundable option deposit. of

course it would still be credited if option was exercised?

 

Hi, I was wondering how does the "Letter of Intent" differ from "flex option" or option to purchase?

 

With the "Letter of Intent" do you have equitable interest ? Can the homeowner cut you out of the deal with a "LOI" ?

 

Thanks

baron

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baron, a Letter of Intent certainly does not give you equitable interest in the property. Nor does a lease option agreement, for that matter.

A Letter of Intent isn't a legally binding contract and so a homeowner can do anything they damn well please until you have a signed and binding agreement between the two of you.

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I see the LOI similar to the Short Offer or CAletter. It gives the seller an understanding of the general terms of the deal, before agreeing to the final documents which are so important in protecting myself (the investor) in the deal.

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