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iggy407

CA Newbie question

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When you do a CA with the seller, what do you write down on the contract portion "option to purchase Agreement" where it says "option consideration $ ____ for the above property", do you fill that portion out with the seller or do you leave it blank til you find a tenant/buyer and see how much down you can get?

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Hi iggy! I think you'll find 2 answers on this board to that question. It seems I tend to do things slightly different than some, whereas I like to have everything (financially) all laid out from square one with the seller so it's all laid out and we all know where we stand. I find it makes it a much easier sell to the seller to jump on board if you will. Therefore, I already know what I'm going to get for Option Consideration, and put it in there, whether it's $3800, $4500 etc. Of course, there should be a spot where it indicates the option consideration that YOU are paying the OWNER for the option. If that's what you are talking about, I put in $10, but you can do $1 or $5 or whatever.

Hope that helps.

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I put $100. paid to the seller on or before the lease start date. The tenant/buyer's consideration I put on the Assignment Agreement.

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When you do a CA with the seller, what do you write down on the contract portion "option to purchase Agreement" where it says "option consideration $ ____ for the above property", do you fill that portion out with the seller or do you leave it blank til you find a tenant/buyer and see how much down you can get?

iggy, when doing a CA and assuming you are using the correct docs, (Option to Purchase Agreement), that blank you are referring to is between you and the homeowner. Therefore, it should reflect the amount of option consideration you are paying to make the deal a legally binding one. $1 is the norm. . .$5 if you're feeling generous. :blink:

The option consideration you receive from the t/b is shown on the CA Assignment of Agreement doc.

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