MichaelC 160 Report post Posted November 2, 2011 Sorry for being dense, but he IS getting the rent credits over the year, so isn't that part of his $204K?The rent credits are just that: a credit towards the purchase price. Meaning that the $2,400 is credited towards the purchase price. Just curious what the rent comps are? Rentometer says $1,300-1,500. Is there a better source?In addition, search Craig's List for comparable rentals, check the newspapers, and if need be contact a rental Agent for info. Share this post Link to post Share on other sites
suburbantim 0 Report post Posted November 2, 2011 How is this for an offer? As per our recent telephone conversations, I am presenting you with this offer to assist you with a lease purchase of your property located at XXXXXXXXXX. 1. Length of lease: 12 months2. Rent per month: $1,600 per month with $200 per month credited toward the purchase price. 3. Maintenance and Repairs: your tenant/buyer is responsible for all allowable maintenance and repair costs during the term of this Agreement. Working with the above numbers, your net purchase price at the close is approximately $204,000 including the rent credits. You incur no out of pocket expense for our services. We advertise and market the property, show it to prospective tenant/buyers, and answer all the calls and questions that inevitably arise. When we have interested prospects, they will be required to complete our Lease Application. This information is presented to you so you can do your due diligence and make an informed decision. Please reply at your earliest convenience. We intend to move quickly with this deal. We have an existing database of tenant/buyers, and we would like to begin marketing your property, as well. Thank you for your consideration. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 2, 2011 Leave out any references to rent credits. They are just one more number for the homeowner to ponder and fret over. His focus needs to be on his bottom line, the net sale price at closing. Share this post Link to post Share on other sites
suburbantim 0 Report post Posted November 2, 2011 The offer went out this morning. Wish me luck! Once it's accepted, I fill out and we sign the "Lease with Option" form as well as the "Authorization" form so I can verify the mortgage? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 2, 2011 The offer went out this morning. Wish me luck! Once it's accepted, I fill out and we sign the "Lease with Option" form as well as the "Authorization" form so I can verify the mortgage?No. If you're working a Cooperative Assignment then you use the CA Residential Lease Agreement, the Option to Purchase Agreement, and the CA Assignment Agreement. Verifying the mortgage is not required, particularly since you are not remaining in the deal. Share this post Link to post Share on other sites
suburbantim 0 Report post Posted November 2, 2011 It looks like I'm about to get the deal and then.. duh, duh, duh... "Hi Tim,Do you have references from previous or current clients" My intended response is: "Hi Michael, I don't keep a list of references because I'm involved in the deal for such a short time. Your main concern will be the application and references for the tenant/buyer who will be paying the rent and exercising the option down the road, once I assign the contracts. Their finances, references and credit history will all be made available to you for your approval prior to acceptance. What do you think? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 3, 2011 If I'm the homeowner I'm not buying it, Tim. Instead, I'd opt for total honesty. Tell the gent you're new at this, but that he will be kept abreast of each step along the way. Assure him he is the one in control and calling the shots, and that he has nothing to lose by working with you. Share this post Link to post Share on other sites
