OfflineBut not a house yet. They want a lease option and they have $20-$25K down. Since I have never done a lease option and this could be my poential first deal ever, should I just act as liason between buyer and seller and get a "finders fee" from the buyer or should I try to do a sandwich lease option. If I just connect buyer and seller, do I use a bird dog agreement? I have to make this work somehow, but not sure which way to go. I know the sandwich lease option would be more profitable, but how difficult would that be for someone who has never done a deal. I'm up for the challenge but just afraid I might mess it up.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Whether you do a sandwich L/O or a wholesale or Co-op (same thing, different name) will depend on the deal that you find.
If there is little or no equity in the property, you want to just do a Co-op. In this one, you get the prop under contract for a set price, add your option fee to that price, which is the price the buyer will be paying and assign your contract. You are not charging a "finder's fee". You are getting an option fee which counts for the buyer toward their down pmt.
You will need to be very conscious of the numbers and the length of time that you set on the L/O. You want to set it up to be a win for everyone. You want to do your best to set it up so that the buyer will be able to get their new loan at the end of the option period.
You only want to do a sandwich L/O if there is a lot of equity. Otherwise, it is not going to be worth the risk.
I much prefer the wholesale/Co-op type. You're in, get your money and you're out. Next!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Thank you, that answered a lot of my questions. This is a new buyer and not connected with the seller that we talked about previously who wanted to do a lease option. If you have read any of my posts about it, you know that that owner decided to list it again with an agent. It would have been perfect for this buyer because they had the down payment he wanted. But it is tied up for 3 months so that one is out the door. I'll be looking diligently for another!
So you're saying I need to get it under contract as a lease option so I control it, then assign it to an end buyer?
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
it
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
bump
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
bump
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Sorry, I wasn't here for awhile.
Yes, get it under contract first. The way that this is all legal to do w/o a realtor's license is because you are selling your rights in the contract. If you have no rights to sell you could get into trouble.
Karen
PS If you have a question specifically for me, if you PM me, it sends a notice to my hotmail and I will get it sooner.
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"