Sandwich L/O - Looking for option agreement

Thanks a ton, I would really appreciate that!

"To make sure we're all on the same page, the option agreement is the contract that gives me control of a property without ownership so I can then lease it out to a tenant/buyer instead of just live in it myself."

The option agreement only gives you the option to purchase the property. Be sure that your lease agreement allows you to sublet to a tenant/buyer. If your lease does not allow you to sublet, you are out of luck.

According to Wendy Patton, in her book, "Investing in Real Estate with Lease Options and Subject-To Deals", I need an Option Agreement ("On the selling side, the option agreement turns control of the property over to the optionee without ownership."), a Rental Agreement ("The rental agreement specifies how long I will rent their home and how much I will pay them each month for the rental."), and a Purchase Agreement ("This agreement sets the terms of the final sale.") I have the Rental Agreement (standard lease agreement) and the Purchase Agreement (spells out the legal terms of the final sale if the option is exercised). Nowhere do I have anything that says that I am allowed to put a tenant into the house I am leasing from the Seller/Landlord. That is what I need.

All you need is a clause in your contracts saying that they are assignable. You only need those two contracts with the seller.

Karen

Each state might be different. A real estate contact that is not recorded is illegal in my state. Verify the laws specific for your state.
Jimmy

With a L/O the house will still be in the seller's name with the original financing. You merely have a rental contract and a contract that says the T/B may purchase the house at a certain time in the future at an agreed upon price. This type of contract does not have to be recorded.

Karen

The lease with option to purchase in the documents section covers assigning and subletting in the contract.

I'm in Texas, and I am reading various places on the internet that L/O purchase agreements are illegal in Texas. Something about the contract not being "executory", that is in essence "incomplete" in it's transfer, or not fully executed. I have heard there are ways around this, but I don't fully understand. I am still researching and do not want to have to pay an attorney to explain it. Can anyone provide any insight? And, even better, has anyone in Texas done any L/O deals and might have a copy of the contracts and/or forms they used that they would be willing to post?

L/Os are NOT illegal i TX. But they do have to be done just so.

There is a guy with a company called Leasing to Buy in Ft Worth who has done them for the last 10 yrs or so and does very well.

Where are you in TX. If you fill out your profile a little more fully, we can sometimes help you better. Things are different in different areas.

Karen

I live in Plano, about 10 mi North of Dallas.

Are you by chance talking about this guy...?

http://www.leaseoptionclasses.com/

or maybe

http://www.leasethenpurchase.com/ltp/Default.aspx

Thanks for the reply!

Yes, it is the first one. He is a very good friend of mine. (I get no kick back)

I went to Ft Worth for four days and trained with him. It is an excellent class and he will furnish the contracts that are legal for TX.

Call and talk to him. He is very friendly and helpful. (He IS from TX, for heavens sake!) Tell him I referred you.

Let me know how it goes.

Karen