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iggy407

I just got the manual...

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I love it, it is very straightforward and informative. I also like how detailed the forms are and the escape clauses in them... I got a quick question just to double check when you do the cooperative assignment you use the following forms... in that order

 

You+Seller=> Lease with option

 

You+Seller+Tenant=> CA assignment of agreements

 

Tenant+Seller=> Ca Residential Lease + Option to purchase agreement

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iggy, thank you for the kind words regarding the manual. Much appreciated.

As for the contracts, when doing a CA there are a total of three agreements we use. They are the CA Residential Lease Agreement, the Option to Purchase Agreement, and the CA Assignment of Agreement. All of these are signed by the homeowner and yourself. When you find a t/b, they would then sign the CA Assignment Agreement. Let me know if you have any questions.

One bit of advice: don't get too hung up on the paperwork right now. Worry about them when you have a deal pending and you need to get some signatures to lock it up. For now, your focus needs to be on contacting homeowners and marketing. That's where this all starts.

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Ohh ok thanks for clearing that up and I plan on starting my marketing in a few days to target homeowners, especially all the FSBO in my neighborhood 7 so far and counting

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iggy, thank you for the kind words regarding the manual. Much appreciated.

As for the contracts, when doing a CA there are a total of three agreements we use. They are the CA Residential Lease Agreement, the Option to Purchase Agreement, and the CA Assignment of Agreement. All of these are signed by the homeowner and yourself. When you find a t/b, they would then sign the CA Assignment Agreement. Let me know if you have any questions.

One bit of advice: don't get too hung up on the paperwork right now. Worry about them when you have a deal pending and you need to get some signatures to lock it up. For now, your focus needs to be on contacting homeowners and marketing. That's where this all starts.

 

Okay, I'm real confused on paperwork.

 

On the CA Residential Lease Agreement, how do I know when the term begins?

 

On the Option to Purchase Agreement, how do I know the option period begin and end date?

Is the full purchase price on this agreement written down as the amount that myself and the homeowner agree on?

My Option Consideration: why would I want my own contract to reveal that Optionees normally are required to put money down to control a property? I do not want them seeing this do I? This would make any homeowner immediately ask me for money.

 

On the CA Assignment agreement, I am assigning all of my rights, title and interest in a said "Agreement" to an Assignee for a fee. What agreement am I assigning? The Residential Lease Agreement or the Option to Purchase Agreement? Seems as if it means the Option to Purchase Agreement. If so then you are still the tenant in the lease leaving the tenant buyer with the option to buy and leaving you with all of the obligations of the tenant!!

Also, the CA Assignment Agreement states that the consideration paid by the Assignee (T/:unsure: is to be considered option consideration and will be credit towards the purchase price in the original Option to Purchase Agreement. So any T/B with a brain is going to want to see this original Option to Purchase Agreement that they are buying. And in this original Option to Purchase Agreement it is going to state your original price negotiated by you with the original seller. So at this point your deal is going to die because 1.) Seller is not going to want this downpayment to go in your pocket yet he will need to reduce the price he agreed upon by the amount of this downpayment once the T/B exercises their option and 2.) Why would the T/B use his hard earned money to buy a contract that you have in place with the seller only to learn that his downpayment is not reducing the sales price at all in this contract that he is buying.

 

Something is backwards here or else I am not understanding correctly at all about this course that I just bought. Can someone please explain? Thanks.

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First, my friend, TADBAR*, while I try and explain a few things about the paperwork and the deals.

It sounds as if you are combining some aspects of a sandwich lease and some of a CA. Therein lies your confusion.

 

On the CA Residential Lease Agreement, how do I know when the term begins?

 

On the Option to Purchase Agreement, how do I know the option period begin and end date?

The option period will coincide with the lease period. And the lease dates are agreed to with the homeowner.

 

Is the full purchase price on this agreement written down as the amount that myself and the homeowner agree on?
The purchase price on the Option to Purchase Agreement is the full price that you are marketing the property for. This is the price the t/b has agreed to, before the option money and rent credits are deducted.

 

My Option Consideration: why would I want my own contract to reveal that Optionees normally are required to put money down to control a property? I do not want them seeing this do I? This would make any homeowner immediately ask me for money.
Most states, (possibly all), require the payment of something as option consideration to make the option agreement a legally binding one. So we put down a dollar or five to meet that requirement. By the time the homeowner and you are at this point, he should have a very thorough understanding of how the CA works. If you're dealing with a motivated seller who's biggest concern is debt relief, this shouldn't be an issue.

 

On the CA Assignment agreement, I am assigning all of my rights, title and interest in a said "Agreement" to an Assignee for a fee. What agreement am I assigning? The Residential Lease Agreement or the Option to Purchase Agreement? Seems as if it means the Option to Purchase Agreement. If so then you are still the tenant in the lease leaving the tenant buyer with the option to buy and leaving you with all of the obligations of the tenant!!
Not at all. Please review it again. The CA Assignment of Agreements specifies that both the lease agreement and the option agreement are being assigned.

 

Also, the CA Assignment Agreement states that the consideration paid by the Assignee (T/:unsure: is to be considered option consideration and will be credit towards the purchase price in the original Option to Purchase Agreement. So any T/B with a brain is going to want to see this original Option to Purchase Agreement that they are buying. And in this original Option to Purchase Agreement it is going to state your original price negotiated by you with the original seller.
Yes, and that's the same price the t/b is paying, because you put the deal together with the intent of finding a t/b for the homeowner. It is, after all, a Cooperative Assignment. You and the homeowner are working together.

 

Hope this helps.

 

 

 

 

 

*TADBAR: Take A Deep Breath And Relax ;)

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