DeeLight 8 Report post Posted August 19, 2012 Tough problem to have right? The interested t/bs have $20-30k (3 different ones) to put down. These 2 props I'm working on are $150k & $275k. How do I figure the option consideration price :lol: Both of my sellers (potential) would like a lil up front consideration. This would be doable with the current interested t/bs. What would you do?? what would I do without you all?? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted August 20, 2012 For me and if this is a CA the spread between the seller's price and the tenant/buyer's price (minus rent credits) I would receive and the rest to the seller. Or, take your assignemnt fee and a lil for the seller and tell the t/b to keep the rest in the bank when they are ready to purchase. For a SLO I would have a larger spread resulting in the potential to receive a larger option consideration. Many t/bs however want a lower rent amount if they put more down. So a chunk of the extra option consideration can be figured in the numbers as pre-paid rent to make up the rent shortage, and the rest of the extra is well, "extra!" Share this post Link to post Share on other sites
DeeLight 8 Report post Posted August 20, 2012 Wow, thanks for so much info Steve. I'm filing that in my Very Important Info file. It's nice to have options. I am SO ready to have a deal actually get done rather than just talking about them. Thanks for your help. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 20, 2012 In addition to what Steve wrote, you can also agree to sharing that option consideration to the satisfaction of the homeowner and yourself. It won't be difficult, believe me. You're in a good place. Share this post Link to post Share on other sites
DeeLight 8 Report post Posted August 20, 2012 Having fun here; laffing at sellers and laffing at buyers. What ev!! It's such an interesting journey!! Share this post Link to post Share on other sites
