Dallas-Fort Worth Real Estate Investor Club

James Moore wrote:

We have been renting a home in Roanoke/ North Fort Worth since May. The home was available for rent or purchase. We did a 3 year lease with the option to buy between the second and third year. We locked in the price of $140k. It now seems that the property is already worth $5k-8k more. We have already spent $2k on interior paint as well as $500 on a new dishwasher.

We are renting to buy us time to improve our credit after a discharged BK.

I believe the owners would be willing to cancel the lease and sell now.

We are looking for an investor that would be willing to buy the property and do a 5 year lease with us with the option to buy anytime after 1.5 years. We of course would like to lock in the same $140k price and would like to have $300 of the rent go towards the purchase. We are willing to pay $1500 per month rent.

If an investor would be willing to do this the Investor would have many benefits- Purchase a home below value, have a built in tenant for 5 years or less if we purchase- we are already improving the property and will continue to do so,,,,,,,,,,,,,

Please let me know if anyone is interested.

moore85251@yahoo.com

 

Hi James,

What you are currentlyare doing and what you are suggesting is probably NOT legal with the current laws on lease options.  Not sure what your paperwork states but unless there is something very creative with your documentation it's probably not leagal.

Having said that, my suggestion is try to exercise your ioption and piurchase it via owner financing.  That solves the problem becuase you will get the deed on the property and that's what the lease option law requires is that you get the deed within 180 days.

Hope this helps.

Tim