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About Xena

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    Princess Warrior

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    Denver CO
  1. When offer is being submitted lender prequal letter is usually needed. Is it possible to obtain such a letter from hard money lender at the time when no contract been signed yet? They require to real estate contract to look at before they even want to talk. Any input is appreciated
  2. We just signed a l/o deal with tenant-buyers. We will be away for several months and wanted to make sure - emergencies such as boiler failure or roof problems will be taken care of. This is why we are cosidering buying The Blue Ribbon Home Warranty. On the other hand there is a Homeowners insurance on the property. Could someone explain what does the homeowners insurance usually cover? Will we have double coverage with the Blue Ribbon mentioned above?
  3. The tenant agreed it's worth $5k. And in addition they are getting house full of stuff.
  4. So we OK with this. $5k seems like it might be high for used furniture. Would the seller consider a lower price? It's bearly used luxury furniture in a luxury home. It's well worth 5k
  5. How do you think we should word the note? The tenant buyer is entering the house with partial deposit. They have to pay it off by the month of April. We want them to buy, and they will have more chance to do that if they save for the downpayment. If they will be paying for the furniture - they will not save anything. We hoping they will buy in 6 months. This is what they want.
  6. Help needed here. We will be signing a lease option tomorrow. The tenant is requesting the furniture worth $5,000 added to the purchase price. Should we do it at all? Meanwhile we planning to add it, adding that in case house is not purchased, tenant is still responsible to pay for the purniture. What if they move out after one year without paying for it? How to prevent this? Any thouughts will be appreciated.
  7. I need help in figuring this out. I have this house listed for $205,000. The house is worth $200,000. Seller cannot pay any closing costs - we will have to request the bank to accept less as full pay off. I found a buyer who is willnig to submit a contract, but they want the seller carry 20%. I just can't figure it out how to make all this work. At the closing the bank will have to be paid off - whother in full or not. They will want everything they can get. What about the 20% owner carry? I'd do a wraparound mortgage and would get paid by the seller outside of the closing. Involvement of buyer's realtor makes thinks even more complicated. Is this doable at all? On the same house: A) To do a shoort sale To cary back 20% C) Pay two agents involved Please give your insight
  8. Just wanted to thank everybody for your opinions. I will keep posting the results here. I warned my broker somebody will call him concerning this. He wanted the copies. He looked them through, asked about the 90 day notice, saw the expiration date and advise to consult an attorney and just filed them into Bad Boy file. Thanks again
  9. Just received a call from the owner. She yelled at me saying the tenant wants to buy for whatever the house appraises but she wants her $5,000 for use for her closing costs. And she says my forms have not been approved by the real estate comission. Yes, they are not. The problem is - I have a RE lisence. Now they both are after me. If I'd be in the deal - I'd probably be able to settle all this but now I am on hot. My forms are the great ones, can they just bluntly say they are ILLEGAL? This is the option: It comes from a great source but I never showed it to a lawyer. Option To Purchase Agreement For good and valuable consideration described below the Landlord agrees that _____________________________________________________________________ (Tenant) has the option to purchase the property known as: _____________________________________ for the price of $______________________________ under the following terms and conditions: a) The non-refundable option payment of $_________________ will apply in full to the purchase price at closing. In the event the Tenant fails to exercise this option or defaults under any terms of the attached Rental Agreement then this option will be void and all monies paid to Landlord by Tenant will be retained by Landlord as liquidated damages and not as a penalty. The term of this agreement is for ________________ months running concurrently with the attached Rental Agreement, and all of the terms and conditions of the Rental Agreement must have been complied with in order for this option to be valid. Tenant understands that if he/she does not comply with ALL terms of Rental Agreement then this option agreement is not valid. This includes (but is not limited to) paying the rent on time each month, and taking care of all the maintenance as described in the Rental Agreement. c) Each month that the rent is paid on time, starting on _______________________ and ending with rent paid through _________________________, Tenant shall receive a credit of $________ toward the purchase of the property. d) Rent is considered to have been paid on time if and only if it is received by Landlord by 5p.m. of the _____ day of the month for which it is due. Any acceptance of a late rent payment from Tenant to Landlord shall NOT qualify as an on time rent payment. e) To exercise this option Tenant must give seller written notice at least 90 days before this option expires. In the event that the Tenant does not give written notice of Tenant’s intention to exercise this option to purchase said property, and this written notice is not received by Landlord at least 90 days prior to the option’s expiration date, then this option is null and void. This option expires on __________________. This option is NOT contingent upon Tenant’s ability to obtain financing from a lender or for any other reason. Tenant understands that TIME IS OF THE ESSENCE for this agreement, and that Tenant’s failure to purchase the property before the expiration of this option, for any reason, or if the Tenant defaults on any of the terms or conditions of the attached Rental Agreement, shall make this option void. In this case, all option monies received by Landlord shall be kept by landlord as liquidated damages. f) This agreement is NOT an installment sale or land contract or contract-for-deed agreement or equitable mortgage, it is merely an option to purchase agreement about the above referenced property under the terms and conditions stated in this agreement. Said notice shall be mailed or delivered to: ________________________________________ ________________________________________ ________________________________________ g) There will be no real estate commission paid as a result of this transaction and tenant will be responsible for all closing costs other than documentary stamps on the deed. This option is subject to Landlord’s ability to transfer clear title to the property. Taxes and insurance will be prorated as of the date of this agreement. Landlord will credit tenant $100.00 at closing toward title insurance. h) The recording of this option or any memorandum thereof will result in the automatic revocation of this option, and all monies paid to Landlord by Tenant shall be retained by Landlord as liquidated damages and not as a penalty. In addition, Tenant will be liable to Landlord for all incidental and consequential damages for slander of title, including, but not limited to, attorneys fees and court costs for correcting title. i) Any changes Tenant wishes to make to the property prior to closing must be approved by the Landlord in writing. Any improvements made by the Tenant will become a part of the property and may not be removed by Tenant in the event of any default on the part of the tenant. j) This property is being transferred in AS IS condition. The Tenant acknowledges that they have inspected the property and accept it in current condition. The Tenant is responsible for all the repairs and maintenance during this agreement. Tenant acknowledges that Landlord has made no representations or warranties concerning the condition of the property or the improvements thereon, its ownership, the neighborhood, or the value of the property. k) All parties to this agreement have read and fully understand its provisions and hereby acknowledge the receipt of a signed copy of this agreement. Tenant is encouraged to seek the counsel of an attorney if they do not fully understand any part of this agreement. l) Additional Provisions:_____________________________________________________ _________________________________________________________________________ _________________________________________________________________________ ________________________________________________________________________. _________________________________ ____________ Landlord Date __________________________________ ____________ Tenant Date __________________________________ ____________ Tenant Date Deposit to hold property Deposit to Hold Property __________________________ (Prospective Tenant) is agreeing to a deposit of $______________ paid to hold Prospective Tenant’s position to rent to own the property located at: __________________________________________________________________. This deposit shall be paid as follows: ________________________________________________________________________________ ________________________________________________________________________________ ___________________________________________. ALL of Prospective Tenant’s deposit will apply towards the purchase of said property (it will be considered as part of Prospective Tenant’s Option Payment) provided Prospective Tenant lives up to all other terms of his/her/their agreements with Landlord. This deposit is non-refundable, and Prospective Tenant must pay additional $____________ option consideration by ________________ and his/her/their first months rent of $_____________ before moving into the property on ________________. If either of these payments is not received by Landlord on time then Landlord may at Landlord’s sole discretion cancel agreement with Prospective Tenant and all money paid to Landlord by Prospective Tenant shall be kept as liquidated damages to cover application review, marketing costs to fill property, and lost opportunities. This agreement is subject to Landlord’s final approval of Prospective Tenant’s application. In the event that Landlord does not approve for any reason, Landlord may at his/her sole discretion refund all of Prospective Tenant’s deposit and cancel this agreement. All option payments and first months rent must be in the form of either certified funds or money order except as noted below. Prospective Tenant understands that Prospective Tenant does NOT have a valid lease or option to purchase said property UNTIL Prospective Tenant makes both other payments described above on time and signs all further paperwork with Landlord, including Lease Agreement, Option to Purchase Agreement, Disclosure Forms, etc. In no case may the Prospective Tenant enter or otherwise occupy said property until ALL conditions and terms in this agreement have been fulfilled. TIME IS OF THE ESSENCE! ______________________________________ ____/___/___ Prospective Tenant ______________________________________ ____/___/___ Landlord and/or Agent for Landlord If initial deposit is to be paid by check, initial next to this paragraph to show both parties understand and agree to the following: Tenant understands that he/she/they are making a non-refundable deposit on this day to hold the property. Furthermore, Tenant hereby states that there are sufficient funds available to cover this check and that Tenant understands Landlord is relying upon the fact that this check will in fact clear. In event this check does not clear for any reason, Tenant understands that Tenant shall be liable for prosecution and collection to the fullest extent of the law. Furthermore, Tenant understands that all remaining option money and first months rent must be in the form of either certified funds or money order.
  10. Thanks for everybody. Some more facts on this deal 1)The tenant buyer can now be qualified for a home purchase and she doesn't want another house that I am offering her. 2) I cannot return the consideration ($5,000) partually because somebody else brought the tenant and I had to share, partially - I just don't have it. 3) The owner wants about $200,000 for the house. She owes $190,000 and she needs the rest desperately. The only thing she doesn't realise - no one will be making her payment after tenant walks away. 4) I notified the owner in writing in January that I will not be able to buy her house. On the most part - I didn't want to deal with this lady. She is incredibly greedy and unreasonable. She didn't even wanted the deal assigned to her as he was suspecting me. I notified the tenant verbally - she will be dealing with the owner directly, which she was not happy with for same reason. 5) I assumed one needs to sell, the other wants to buy - they don't need me there. The option ended February 1, 2004 (I just realised that). I didn't extend it with the tenant and she was OK with that. She requested the extention but we never signed it. 6) The owner now scared the tenant by being rude and denying everything, She hired a real estate agent to market the house. The tenant is requesting her option payment from me and became very irate. All the time she was under the impression this money in in the escrow somewhere (which I neve told her) 7) My option agreement does not mention the house appreciation or depreciation. It only states the following: A) This option is NOT contingent of upon Tenant's ability to obtain financing from a lender or for any other reason. She had to give a written notice 90 days before the purchase - which never happened. If she does not - her option is null and void Now after I analysed all this - I am happy Am I safe because of 5) and 7)? Sorry for a long post - it may help some one The question is - am I safe?
  11. Hello, About a year ago I signed a lease option deal on a house. I see now it was not a good deal but...here are the detais: The seller wanted $200,000 for the house worth about $190,000 The tenant buyer agreed to pay $210,000 for the house. This price is in the option agreeement. Now, one year and a half later the tenant is ready to buy, she appraised the house the value is $190,000. She refuses to buy the house at the $203,000 price (the contract price less option and rent credits), and more than that - wants her option money back ($5,000) I have a nice house to put her in, it will be well under market for her. But she says she wants her money back if she can't buy the house she is living in, she wants to decide what to do with the money, and not just get into a house someone will pick for her. The question is - what happens with the contract/option money if the house falls down in value? Please help
  12. Oh Michael! You always there for your students, former ones and for your forum guests as well. Many many thanks for inviting me over.
  13. Motivated sellers don't ask. If they star asking you about your experience and credit report - they are not motivated. And you don't have anything to do with them anyways. Btw - did anyone have to provide sellers with their credit report?
  14. Here is a problem - I will be assigning the deal back to the seler. First - there is not much left on the back end. Second - I am tired of this seller. She happened to be in when the tenant came to look at the house and since then she tries to be in between. Calls the tenant etc. I made $5,000 on the front end - and I should have quit then... The lease with the T/B will be extended for one more year. And they want to buy. The seller wants her expensive french door out of the house. She says she paid around $2,000 for this one door. It is inside the house - on the lower level. I am confused now - I signed with the tenant - "AS IS" agreement. How do I get that door out of the house? If the tenant doesn't care - that would be OK. If they do - I might give her extra $1000 in credits af she cares about the door. Anyways it's not my profit at the end. Does this look like a solution?
  15. Unfortunately NO appreciation in our are. Property values falling.
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