Commission on a lease option

[Minna Reid]

If I sell a house via a lease option, how do I split up realtor commissions? As in lets say its a 5% commission. What comes out up front, and what comes out should the deal close two years from now?

[Brian Gibbons]

Lease Option success has alot to do with how much the TBer puts down. So Agents can get a commission.

This where the 6% formula breaks down (I dont hate realtors, but 6% for a service on a $300K house is alot per hour!

I wish agents received quality training in Lease Purchase, Lease Options, Seller Finance (carry backs, sub2, land contracts,) land trusts, etc.
But they do not.
And their E & O Insurance does not help them much. And Liability Isssues from Brokers - Managers, well, I remember hearing "Sub2 and Lease Options, they are illegal!" from one broker manager. Pure bunk.

If you could do the following:
* create a website for TBers to leave their info
* get door hangers and flyers and bandit signs up for TBer to be driven to Web Page
* get TBers money together, whether it is a loan from Household Finance, or loan from their parents, what ever
* convince the Seller that the sales price is a new appraisal, period, at the time the TBer gets financing approved and funding letter is typed up
* learn about credit reports and clearing negative marks (Fair Credit Reporting Act, FTC, etc)
* have a goal where 10% down payment is arrived to get good rates
* have the seller pay closing costs
* you as an agent get 3% now, 3% when it closes

The challenge is helping both the seller and TBer get a win win, not easy.

i.e. How do you arrive at the exercise price? For a Depreciating Asset? :roll:

Wishing you all the best,

Brian