Lease Option Agreements Intro

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Lease Option Agreements Intro by Mind Map: Lease Option Agreements Intro

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 Purchase from Seller

2.1. 1 You do not own the property

2.2. 2 You want to control the property through a lease purchase arrangement

2.2.1. Lease Purchase Agreement is 1 agreement with the seller

2.2.2. When you sell on lease option there are 2 agreements - lease and option

2.3. 3 Paydays

2.3.1. 1 Difference between option fee you pay seller and option fee you receive from TBer

2.3.2. 2 Difference between rent you pay seller and rent paid to you by TBer

2.3.3. 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.

2.3.3.1. This is also called the "back end spread"

2.4. 4 Buyout Agreement with the seller

2.4.1. Avoids double closing

3. Strategy: Lease Option Assignment

3.1. 1 You do not own the property

3.2. You want to do a Lease Option Assignment

3.3. Steps

3.3.1. 1 market for seller, motivated, to sell

3.3.2. 2 present benefits to seller

3.3.3. 3 paperwork for the seller

3.3.3.1. letter of intent

3.3.3.2. lease

3.3.3.3. option

3.3.3.4. short form offer to lease option

3.3.4. 4 market for the tenant buyer

3.3.5. 5 present to the tenant buyer

3.3.6. 6 paperwork for tenant buyer

3.3.6.1. earnest money agreement for TBer

3.3.6.1.1. must have 3% plus first and last months rent

3.3.6.2. lease

3.3.6.3. option

3.3.6.4. option release paperwork

3.3.7. 7 final meeting with seller

3.3.7.1. agreements signed by TBer

3.3.7.1.1. signed lease

3.3.7.1.2. signed option

3.3.7.1.3. signed option release

3.3.7.2. have seller sign:

3.3.7.2.1. option

3.3.7.2.2. option release

3.3.7.3. 8 Investor receives check for option release fee

3.3.8. 9 TBer receives keys to LO House and copies of paperwork

3.3.9. 10 Seller receives first and last months rent plus copies of paperwork

3.3.10. 11 You the REI Investor receives the Option Release Fee $1000 - $10,000

4. This is an introduction to Lease Options Agreements

4.1. Contact Brian Gibbons 818 400 3046 for full 1 on 1 training including agreement