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Manny G

Lease Option Assignment Help......(Option Consideration)

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So Im trying to get my head around this. Lets say I have a LO deal I want to assign. (a cooperative assignment LO)


The Seller only wants 1 month rent as a security deposit.


The TB has 10k as option consideration.


Wouldnt the seller bark at seeing a 10k option consideration that they get no piece of??


Is there a way not to show the 10k option consideration to the seller?


I know its best to disclose fully but I just see that being a problem.


How do you guys deal with this? Thanks


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Hi, Manny. Sorry for the delayed reply. Just returned from a week's vacation in Europe, away from machines and the internet.

Will the seller bark at seeing you are making money? In all likelihood, he probably will. But did you tell him you were a nonprofit organization? A church? Our job is to have the homeowner's attention focused on his net price and profits, not ours. If that number was agreeable upfront, and your piece of the pie doesn't affect that, the homeowner has no reason to gripe. But in the real world that doesn't mean he or she won't bitch. When this happens you have to be nimble and flexible and do what is necessary to keep everyone happy and the deal alive. Real estate involves much in the way of negotiation.

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Hi MC, Welcome Back!

 

I had a hint you were over in the "old country," figured you were checking in visiting with the godfather. B)

But hey, what do I know I'm Irish :blink: lol

 

Manny, I would always want to disclose early and upfront; easier to make things work. Surprises at the end of a deal can prove more difficult. my2cents ^_^

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My wife and I hit up Italy last October to check out some ancestral stomping grounds. This recent visit was to Spain and Portugal. Wine, Iberico ham, and bread. Couldn't get enough!

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