What's the best way to do this?

[nashvegas 2]

Hello Everyone,

 

This is my first post. I've had MC’s course for some time now, and finally decided to give this the attention that it deserves.

My first week has been productive. I'm a few days away from closing my 1st CA.

On this deal, I'm splitting the option fee with the home owner. 50/50. (my offer) I'm sure as I gain experience I will not be so generous.
The option fee is $5K. The Tenant/Buyer only has half of that right now and will have the rest in a month or so.

The way it looks, I will get the initial $2500 and be on my way, and the home owner will work with the t/b for the rest of

the option money.

 

My question is, what’s the best way to write this up? When we sign the Assignment Agreement should the amount be for $5K

and show $2500 was paid, and the balance due to the owner? Or, should the Assignment Agreement be for $2500 and let the home owner and tenant/Buyer

work the rest of the terms out?

Thanks in advance,

Warren

[MichaelC 160]

Warren, the CA Assignment needs to specify the terms of the option money: who, how much, and when. In this case, it should note you are to receive $2,500 at signing, and the homeowner is to receive the balance on the agreed to date. Simple enough.

And, yeah, don't be so quick to give away half your earnings. You most likely could have kept the bulk of that money, minus a month's rent or so. Still, you're off to a good start. Congratulations, and keep moving forward.

[nashvegas 2]

Michael,

 

Thanks for the quick reply.

 

Just a little info on this deal.

 

It's hard to say that this is the easiest deal I've ever done when this is the only one I've done BUT.....

 

On the first day that I decided to get back into it, I saw an ad on CL for someone wanting owner financing in a particular part of town. So I figured it would be great experience

for me to pick up the phone and give them a call to see what their situation was. They were relocating back to this area and needed a 3 bedroom <= $200K and had 5K

to put down. Literally, 5 lines down from her ad was a FSBO ad for the location she was looking for, with just about all the amenities she was looking for. So I called the owner

and asked if he consider selling his house as a Lease purchase and he said yes without any hesitation. I told him what I do, and mentioned the women, and everything fell into place

in a matter of days.

 

I guess I will get my 150 NOs in a row on the next one, and the next! I'm finding that picking up the phone and calling is a great way to jump into it. Your fears of not knowing what to

say go away quickly.

[MichaelC 160]

I'd like to tell you all your deals will be this easy. . .but they won't be. Nevertheless, you took action and it will soon pay off. Cash, experience, and confidence gained. Congrats!