mweaver606 5 Report post Posted March 14, 2014 I hate this idea, but it might be needed for a certain property I have, lol. So how exactly do you write this up? I understand doing a separate note for the financed amount, but what total do you put in the option agreement? The amount they paid up front and then you do an addendum for the final amount? I can't see putting in an amount that they haven't actually paid yet. Do you make the total option dependent on getting all payments, and on time? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 14, 2014 Are you the owner of this property, or are you working a Cooperative Assignment? I ask because my reply depends upon your position in the deal. Share this post Link to post Share on other sites
mweaver606 5 Report post Posted March 14, 2014 Cooperative assignment. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 14, 2014 At various times in the distant past I have done deals where the tenant/buyer has agreed to pay the option consideration over time. Sadly, it has rarely worked out. There always seems to be an excuse why they are late or don't have the money. Ultimately, I decided I just won't agree to these types of deals anymore. However, if you want to give it a try, I say go for it. You may have better success at it than I did. In the CA Assignment Agreement I complete the form as usual but write in "See Addendum" where I would normally write the amount of option consideration being paid. Then I write a simple addendum stating the specifics: amount to be paid on what dates.You need to receive something upfront, mhmi. Consider any money you receive later on as an unexpected bonus. Also, keep in mind if the t/b doesn't comply and pay as agreed to, you have no leverage. You certainly can't evict them as you aren't the homeowner. Share this post Link to post Share on other sites
mweaver606 5 Report post Posted March 15, 2014 Yea I know it's been a disaster for people so I've never done it. This would only be $1000 of it financed, so I'm not too worried. Thank you, doing it that way makes sense! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 15, 2014 For a grand it isn't worth letting the deal die. Go for it and you just might get a $1K bonus down the road. Share this post Link to post Share on other sites
Dustin 0 Report post Posted March 24, 2014 mhmi,What did you end up doing and how did it turn out? Share this post Link to post Share on other sites
mweaver606 5 Report post Posted March 24, 2014 Paperwork is all signed, now we wait and see if they make the 2 payments! I think they will. I did set their option to actually start on the day they make the last payment, and all paperwork sets out the option is not valid if payments are not made on time and no refund of course. These particular buyers are pretty serious, they drove by the house and sat in the neighborhood 5 times before even seeing the inside, and have been back several times since. The day of the viewing they were there an hour and a half early to sit and watch. Half of the time people just don't show up, lol, these people call every day and visit like they already own the place. Wish everyone that called was like them! 1 Share this post Link to post Share on other sites