Dallas-Fort Worth Real Estate Investor Club

Opportunity to invest in a 'lease to purchase'

  • 18 Jun 2013 8:57 PM
    Quote
    Message # 1321481
    Deleted user

    I have a buyer that is interested in doing a 'lease to purchase'. I am in need of funds and was wondering if any investors would be interested in buying from me at a discounted price and selling it to this buyer at the end of the lease. I just got the offer and still working out the details but here is what I am proposing to the buyer,

    Sale price - $369,000
     

    Rent - $2,500/month

    Rental premium - $1,000/month(non-refundable, credited towards down payment at closing).So, total rent is $2,500 + $1,000= $3,500/month.

    Option fee - 5% of sale price(non-refundable, credited towards sale price at closing)

    It is a great custom home built in 2006, 4091 sq.ft, tons of upgrades, feeds into excellent schools, upscale neighborhood, comps are at $110-$120/sq.ft.

    If interested please shoot me an email at krispatx@gmail.com
  • 19 Jun 2013 7:26 AM
    Quote
    Reply # 1321772 on 1321481
    Tim Cook

    Hi Kris,

    I am not an attorney and I am not giving legal advise, but I've been in the business since 2000 and based on my understanding of the lease option law implemented back in 2005/2006, what you have explained in your posting is NOT legal and I recommend you NOT proceed with it.  The new law has several very strict requirements in it and Non-Refundable down payments is one of them that is no longer allowed.  Lease Options are legal, just very difficult to comply with all the requirements.  This is not a 2 minute discussion but if you want to call me and tell me more about your seller I may be able to help you with an alternative "LEGAL" way of getting it done for you.

    To Your Success!

    Tim Cook

    tim@AllWholesaleProperties.com

    817-599-8058

    Last modified: 20 Jun 2013 12:51 AM | Robin Carriger (Administrator)
  • 19 Jun 2013 11:27 AM
    Quote
    Reply # 1321977 on 1321481
    Deleted user

    Thanks Tim. I was just trying to give an idea about the agreement. This is the first time we are doing anything like this, so I may not be using the right language but I will make sure I talk to an attorney and follow all the steps. Will not do anything that is not legal. I will give you a call if we are moving forward on this.

    We are still in the very initial stages of negotiation on this but I was just trying to see if there are any investors that may be interested in buying the house on a cash basis at a discounted price and later sell it to this buyer. I am in immediate need of funds, so I am not sure about holding it for 1 year but I may be willing to sell it at a discounted price if it's all cash and close quickly.

    Last modified: 19 Jun 2013 11:27 AM | Deleted user
  • 19 Jun 2013 2:11 PM
    Quote
    Reply # 1322144 on 1321481
    Howard Cox

    Kris,

    I might have interest in your house depending on the discount to market and the location.

    Howard Cox

    howard.cox@hotmail.com
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