Slow Market Profit with Lease Options

If I was to go in a Flexible Option Contract with a Seller on their property. The contract will give me the right to market their property for sale, because I now have partial equitible interest on the property. The terms of the contract gives the optionor "seller" to continue to market their property and if they find a seller before I do the seller can terminate the option contract by notifying me of such. Is there a way where I can assign that contract to another wholesaler so that they could market the property to their buyers list. I will give them 14 days to market it to their buyers list and after that day the contract is null and void. Will like to be able to have a couple of wholesalers marketing the property for me and who ever has the end buyer is the one who will get compensated. Now I have to think about how will this deal be orchestrated trying to see all angle.

rather than making things too complicated by assigning the contract to other investors and trying to figure out the verbiage in the docs etc., approach it from the easy road. Simply work with the investors you have in mind, and develop a working relationship with them that they can market the house, and you all split the option fee or whatever terms you come up with.
You may want to try to keep more than half the option fee, as you are doing more work.
You will want to work out the flow of the leads, and the showings.
If another investor gets a lead, you will likely need to be the point man in regards to showings, assuming the house is occupied, as YOU are the contact with the seller, and you want to be sure to stay in the deal.
I would work out a deal of say...30% of what you are getting on the assignment to pay as a referral to another investor.
Have that investor market the property to their TB list, then let that investor pre-qualify or at least pull credit for you to review and then you show the house to the TB. You do the deal, the other investor gets 30% or whatever deal you all work out.
I have reps that work for my company, and it's not that much different.

thanks Karen for the info, but I did find that most of my sellers have no equity or not willing to sheer any of it. I've been working with the strategy of:cooperative lease options, also known as wholesale lease options this is been a great strategyas it allows me to stay in the middle with no risk , no money out-of-pocket this is a great strategy for anybody who has no money and no credit, you may not make as much as with a sandwich lease option, but the fast nickel is sometimes better than the slow dime. I've only done a few them over the past eight months, and that is only because I have not been working hard at it. It is true what they say a harder you work the more you can make.

thanks again, Reuben

Keep at it Rueben! Co-Ops are all I've done for 8 years and it's great helping 2 sets of people on each deal. Well...3 if you include me! HA!

I like that comment "helps people and puts people in". great phrase. I too am starting to focus on the LO strategy. I placed one ad on Craigslist and got 4 bites. I felt like the car chasing dog that caught a car and now dont know what to do with it. LOL But, I got to re-phrase my add to target those with a downpayment and reasonable income. Anyway, I agree this is the ideal strategy that is simple to learn and simple to execute. Thanks for your information and encouragement.

I agree with you on rewording your add. I'm assuming it's the one that says "Need to sell your home now? (Hoover/Vestavia)".

Maybe you could hit-up kareng since L/Os are her fortay, as well. I'm sure she can advise you on script(s). Don't forget Greg Murphy in Dean's Your Town Your RE Propfits.

BTW - Great job on taking action. You'll be there before you know it!!

John. actually I got none on that ad. The bites came from a L/O ad I placed. Actually I have a request into both of them. I have to keep it sweeter and simplier. LOL

Steve,
I put an ad on Craigslist at 2:00am. Checked my e-mail at 8:00 am and had 4 replies. Had 2 calls by afternoon and met with a lady who is signing with me in the morning. My ad was simple and you have to have a catchy headline.

Owner Finance $3000 DN $850 MTH 3BD 2bBTH

This could be luck or a good ad. I will continue to run it because it gets to the point and prequalifies callers. If they want a 3bd house, have $3000 to put down, and can pay $850mo then they are likely to call.
Even though I have my T/B for this property, I am taking down names and numbers of callers and trying to find out what they need and can afford. This ad is filling my subject property, but it is also building my buyer list. Oh yea, I have received an e-mail from an investor who was looking to purchase FSBO homes. This person is probably doing the same thing we are doing, but perhaps I can still add her to my buyer list as an investor after speaking with her.

Point being, keep it short, informative, and to the point! This will save you and everyone reading your ad time and make you more profitable! Short ads are less expensive and have greater impact. Thats a win-win!

Hope this helps,
Tradesmen1

Thank you for the advise, and I like your 1st name Btw. L/O prospects are hot in my area and I have to concentrate on getting some properties available when people respond...like the pilot mentioned previously. Hope all is going good with you and I like your approach.

I'm a newbie and certainly need help from you guys with more experience. I have a L/O on a property with a motivated seller and a potential buyer eager to buy once his credit is repaired. Question: keeping it as simple as possible what form do I use between me and seller and which form between me and T/B? I have read the option information from Gregg Murphy on Dean's Your Town Your Real Estate Profits but I am missing/or not understanding the "forms" process. Can someone help me please? Thanks, Emanuel

Go to my thread that I put up earlier today.

http://www.deangraziosi.com/real-estate-forums/everything-else/71370/lea...

Karen

Karen, thanks for the thread, great info..I appreciate your help

I am looking for a lender that will refinance a lease option. Can anyone help me. Thanks

Not sure I understand your question as I have never ran into that. Either the tenant/buyer meets the LO terms or they dont, unless they can get an extention. The owner is their banker. Anyone out there that wants to make any corrections to my statement...please do!

Also, please add a little more info on your bio because were nozy and like to know who we are talking too. Seriously, it does help us to know where you are located, a little about your goals so we can better assist you.

I live in SE Iowa and every time I approach someone about wanting to do things differently they always don't want to work on a deal with me because they are not sure what I am talking about or they think I have to be a RE agent or other professional. Does anyone have any advice on how to convince people that I am not a scam artist and what I want to do is safe and won't get them into financial trouble.

How do we handle that? Technically the owner isn't selling the house until I exercise my option...but the agent has in theory put some work into selling this home. What is the proper way to, or who, handles the commission?

Also, is a credit check necessary? Obviously they aren't going to have stellar credit, but as a l/o seller what is my obligation since I do not want to get stuck with a mortgage I can't afford?

Thanks for the great information and the help!!!

The contract between the REA and the seller is between them. That is for them to decide how to handle it.

Sometimes, just to be nice, you can offer the agent something if you like. A half month's rent or so should work, but you are not obligated to do so. On the other hand, if you can keep the agent as an ally, they may send you more business. They may have a seller who is frustrated and says, "I am just going to have to rent this house since it isn't selling." And then they can refer them to you.

I would DEFINITELY do a credit check. They won't necessarily have stellar credit but you can see if they just habitually don't pay their bills or if they just got into a temporary tough spot. You have an obligation to the seller and the buyer to make the situation happen positively for all involved, if you possibly can. You are doing neither of them a favor if at the end of the option period the seller gets his house back and the buyer has to move and has lost his option fee.

You want to be careful with your terminology, too, so that you are not getting into the position of a REA. You are not the "L/O seller". You are selling your contract. That is how you can legally do this. I know what you mean and am only trying to caution you so that you start out with good habits and stay safe!

Karen

I own a property that i had bought as a flip in Arizona. However we took so long with the renovations (due to several problems) the house prices went down further. So we tried to sell it and were willing to take a loss of a couple of thousand. We got an offer and unfortunately it did not appriase. So instead of trying to sell it at a huge loss we have decided to offer it for Lease Purchase. We do not want to keep that particular house as an investment property. We are getting conflicting information about Lease Purchase. Do we have to keep the money they give us as a down payment in Escrow? Do we also have to charge them a security deposit? Who takes care of any problems in the house? I will have insurance for the house. Where can we get Lease Purchase (we don't want to do lease option) forms that we can use?
Any help will be greatly appreciated. We are trying to make best of a difficult situation. As this was out first deal and we were not able to sell we are trying not to get too dissapointed or discouraged. We are still going forward and are planning for our next deal once we have this house leased out.
Thanks