OfflineJust wanted to emphasize how important it is to remember to use this in your finance arsenol, especially with all ya' all with bad credit and or just getting started in REI
Step#1: The OPTIONEE will pay a real estate option fee or otherwise known as OPTION CONSIDERATION, usually anywhere from 2%-4% of the purchase price.
Step#2: The OPTIONOR grants the OPTIONEE(buyer) the exclusive, unresricted and irrevocable right and OPTION to purchase a property @ a fixed purchase price during the OPTION PERIOD by executing a RE-OPTION AGREEMENT with the OPTIONEE.
Step#3: The OPTIONEE either ASSIGNS or EXERCISES his OPTION or lets it expire.
Step#4: Once EXERCISED, a RE-OPTION AGREEMENT turns into a BI-LATERAL AGREEMENT in which the OPTIONEE becomes the buyer and the OPTIONOR becomes the seller.
Step#5: The seller transfers the properties TITLE to the buyer @ closing, YOUR HERO, SULLY 
YOUR HERO, SULLY
glad to see class is back in session. check out my post on l/o 101 for more input
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Great stuff, thanks for sharing that with us and welcome, glad to have you back!!
God bless you,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
much appreciated, SULLY
YOUR HERO, SULLY
Sully,
I really appreciate the advice that you have given. It will help me on my quest. I have a qestion for you. What are some terms that we should consider when doing a lease option on the contract?
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker
good question young lad, well holt in order to anwser your question properly, i would need to know wether your acting as the optionee(buyer) or optionor(seller)
optionee- i like to add the following contingencies: SUBLET- make sure you have the ability to SUB-LEASE
optionee- also add the ability to ASSIGN the contract with either an ADDENDUM or sign the lease with and/or assigns
optionee- also add the ability to EXTEND THE OPTION, because a LOT of sellers will only want to do 1-2 year lease options, @ least this will buy you some time to arrange financing if needed
optionee- also add an escape clause, like contingent upon my "PARTNERS APPROVAL"
optionee- i always try for @ least 50% rent credit, and of course, make sure you and the seller agree on the price of the property, BEFORE signing the lease papers, YOUR HERO, SULLY
YOUR HERO, SULLY
Thanks for the advice. What if I am the optionor? When approaching a seller with the intent to use this technique, how will I know if the time is right? Or should I just ask? I don't mean to bother you with the many questions. I'm just very interested in lease options and want to learn the technique. Thanks in advance for taking time to respond.
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker
holt, you'll know when the time is right, and usually it's when your on the phone with the seller. Example: if i call a FSBO AD in the paper- even if the AD doesen't state LEASE OPTION, i still ask if the seller would be open to an OPTION, thier's many reasons a seller would say "yes", maybe the property has been for sale for MONTHS(which would indicate, or be a good sign of a FLEXABLE SELLER) or the owner may have passed and a relative inherited the property, etc. So, to answer your question: YES, just ask, CLASS DISMISSED, SULLY
YOUR HERO, SULLY
Great to hear from you again. Have you been reading law books again?? You know what that can do to your mind!!! good piece of info brother, good research.....Jan