Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
MJ Smook

Check from title company.

Recommended Posts

When I do a SLO, my understanding is that the TB should make out his option consideration check to a Title company so that it will count towards his down-payment for future purchase financing.

Is this correct, and if so, how do I get the money out of the title company and back into my hands?

 

Thanks for your support

Share this post


Link to post
Share on other sites

Hello, MJ, and welcome aboard.

No, your understanding is incorrect. When doing a sandwich lease, that option consideration from the t/b goes directly to you. It's nonrefundable and it's your first income stream in a sandwich, the others being cash flow and then back end profit.

Option consideration may or may not be accepted as part of a tenant/buyer's down payment. It is wholly dependent upon what the t/b's chosen lender decides. In the real world, however, that is almost never the case any longer. Instead, it is treated as a credit towards the purchase price.

Share this post


Link to post
Share on other sites

Thanks for your reply Michael and for the welcome. This forum is a great opportunity to get clear on exactly what to do to make a success of this business. By facilitating it in addition to your book, you have delivered above and beyond.

  • Like 1

Share this post


Link to post
Share on other sites

×
×
  • Create New...