1. Strategy: Sell on Lease Option
1.1. 1 You own the property
1.2. 2 You market for a Tenant Buyer
1.3. 3 Paperwork for Tenant Buyer
1.3.1. lease
1.3.2. option
2. Strategy: Lease Option Assignment
2.1. 1 You do not own the property
2.2. You want to do a Lease Option Assignment
2.3. Steps
2.3.1. 1 market for seller, motivated, to sell
2.3.2. 2 present benefits to seller
2.3.3. 3 paperwork for the seller
2.3.3.1. letter of intent
2.3.3.2. lease
2.3.3.3. option
2.3.3.4. short form offer to lease option
2.3.4. 4 market for the tenant buyer
2.3.5. 5 present to the tenant buyer
2.3.6. 6 paperwork for tenant buyer
2.3.6.1. earnest money agreement for TBer
2.3.6.1.1. must have 3% plus first and last months rent
2.3.6.2. lease
2.3.6.3. option
2.3.6.4. option release paperwork
2.3.7. 7 final meeting with seller
2.3.7.1. agreements signed by TBer
2.3.7.1.1. signed lease
2.3.7.1.2. signed option
2.3.7.1.3. signed option release
2.3.7.2. have seller sign:
2.3.7.2.1. lease
2.3.7.2.2. option
2.3.7.2.3. option release
2.3.8. 8 Investor receives check for option release fee
2.3.9. 9 TBer receives keys to LO House and copies of paperwork
2.3.10. 10 Seller receives first and last months rent plus copies of paperwork
3. Strategy: Lease Purchase from Seller
3.1. 1 You do not own the property
3.2. 2 You want to control the property through a lease purchase arrangement
3.2.1. Lease Purchase Agreement is 1 agreement with the seller
3.2.2. When you sell on lease option there are 2 agreements - lease and option
3.3. 3 Paydays
3.3.1. 1 Difference between option fee you pay seller and option fee you receive from TBer
3.3.2. 2 Difference between rent you pay seller and rent paid to you by TBer
3.3.3. 3 Back end: when TBer gets financing and pays the investor the sales (strike) price; and the sales (strike) price that Investor negotiates with the seller.
3.3.3.1. This is also called the "back end spread"
3.4. 4 Buyout Agreement with the seller
3.4.1. Avoids double closing