lease to own. : ezLandlordForms

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Thomas K

started a topic over 12 years ago

i want to get 5000 dollars as part of a lease to own agreement. where in the contracts do i put that???

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Bob R

said over 12 years ago

Assume I’m renting with lease option to buy, 3 yr contract. If it’s not written properly, as soon as I sign the lease, I could have complete control. I could rent it for more rent than I was paying and put up a for sale sign and sell the property. And, let’s assume the option was for $100,000. After 2 yrs, the value increased to $125,000. I could make approx $15,000 after expenses without investing a penny. It’s true you got the negotiated price, but had the contract been written correctly, I would not have been able to make $15, 000 + rent and you may have been able to sell the property at the current price due to the fact that I couldn’t buy….. There is no “usual %”. The $$$$ is yours, but you should get tax advice… I could go on, but……... Don’t get me wrong. Lease options to purchase can be a great way to sell and profitable. You just need to know what you’re doing. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance

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Mary G

said over 12 years ago

How can an owner get burned and what is the usual percentage of asking price but into a n account? Doe the selller have access to that money?

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Bob R

said over 12 years ago

@ John: CA and all States - lack of knowledge. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance

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John L

said over 12 years ago

What are the most important caviats for a lease to own in CA? -JL

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Bob R

said over 12 years ago

No, I was not interested in your thoughts, but thank you for sharing.....Now that you opened the door, let me guess - you've been burned and now you want to do a lease option to eventually sell your home (FSBO)? Although I somewhat agree with your assessment, I fail to see what it has to do with your original question about where to place $5000 in the lease option contract. That’s like asking “Where do I enter the $5000.00 rent amount in the rental agreement.” I don’t mind helping, but I get the feeling this is your 1st time around selling. You can get burned if you’re not careful. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance

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Thomas K

said over 12 years ago

since you persist, here's what i think. i think the collusion of realtors and bankers had a great deal to do with the financial collapse of the country. there were laws in place to keep it from happening. but the big banks bought the congress and made it easy for them to inflate the real estate market. collapse was inevitable. and the realtors gleefully help inflate the market to get their cut. the banks made the loans for their cut, then sold the mortgages , and the bottom feeding insurance industry was there to help it all along. now i know that every real estate agent in the country , sitting on their big profits, would be looking at me in shock and horror, thinking what's the matter with this guy. doesn't he know we are innocent bystanders and by the way, every financial adviser in the country was advising the exact opposite of what small investors should have been doing before the downfall. they should have dug an immense hole , all jumped in and pulled the dirt in after them. but they were right back at it the next day, getting their cut for advice they just can't give.

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Bob R

said over 12 years ago

Real Estate IS about money. If it wasn’t, you wouldn’t be doing a lease option. Your original question indicates you have little to no experience and probably should consider professional help. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance

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Thomas K

said over 12 years ago

Sounds like you are all about the money. Actually , i have an attorney, but he gets 175 an hour, so the less time i spend with him the better i like it. So you are saying it's not worth the 25 bucks to do a little research on issues of lease to own?

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Bob R

said over 12 years ago

Are you serious? If you have to ask such a question, you probably should not be doing a lease option. You’re asking for trouble. You really should contact an attorney to help you with this. There are many loop holes that can cost you $$$$. One example….. I sign a 3 yr lease option….property goes up in value….”I” sell it (not you) and “I” make a nice profit. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance