Wholesaling

[Jose Castillo]

Are lease options assignable? How would I go about wholesaling this to my end buyer? Would I take all the information down including anything we negotiated and sign the lease option then quickly assign it to my cash buyer? Then I'm assuming he'll sublease it to a potential buyer that can't get an FHA loan. Is that about right?

[Brian Gibbons]

@Jose Castillo

Here are some pointers about Lease Option Assignments.

The house - good neighborhood, good schools, good fixed financing (not ARMS), good condition, 4 Bedrooms +.

The Seller - wants to make more money with lease to own than selling with an agent, willing to wait for TBer to get financing, willing to be a landlord for 1 - 3 years.

The TBer - really wants home ownership, wants to stop renting, wants a great neighborhood, willing to get credit better, willing to pay down debt (DTI), wiiling to be in a lease to own program for 1 - 3 years.

The lease - 12 months with possible extensions, market rent.

The option - today's comps for sales price, 12 month term.  Possible extension if rent is paid on time.

Pointers - I use an option release fee, I enter into a lease w option w seller, record the option, have the TBer pay me an option release fee, then an attorney draws up a new lease and new option with the seller and TBer.  This is cleaner than having assigned paperwork.