How to structure Purchase Option so that I can retail after rehab

[Don Harris]

I'm looking at an opportunity property that the owner will lease to me with the option to purchase at a wholesale price. The property needs rehab. I see this opportunity as "owner carry" while i fund the rehab. Then retail out.

What stipulations , cautions, experience do you have with such transaction so as to advise me to include in my documents. 

Thanks, 

[Sky Mikesell]

I love these sorts of deals... 

If there is a current 1st position loan making sure the owner is current and stays current. During renovation i would stipulate you get to pay their lender directly. obviously control. If you owner finance you can get the deed moved to your name.  If you lease option then recording the option agreement on county records. in my lease options i like putting a clause in there preventing the current owner from trying to leverage against it and lastly for any money your putting in you can also record a loan against the property. this usually is not necessary if you have the other parts done right but adds a belt and suspenders protection for you. 

if property is in charlotte area i can refer you to an attorney that actually knows and understands lesase options.