Owner carry or lease option?

[Jake Mires]

I have an interesting situation I need help with! I have a house I want to purchase, I've talked to the seller who just wants to get it off their hands. I suggested this- I pay them $1,000 per month for the home, and buy it for $200,000 after 2 years. But I treat the home as my own, upgrade and fix it up to rent it. The idea is that I pay the owners $1,000 per month, rent it out for $1,400 take that cash flow, and purchase the home after 2 years at $200,000. With appreciation it will be a great deal at 200k in 2 years. I don't know if I should do an owner carry? Or a lease option with sub-lease? I want to be legally straight. But am slightly afraid if i fix up The house and they don't sell it to me, I'm screwed right? 

[Joe Villeneuve]

Originally posted by @Jeremy Roberts:

@Jake Mires - I highly recommend you qualify your sources of information before making decisions. We could use more details to help give better advice, but the real question is determining whether or not you have a deal. Check the definitions for lease-option and lease-purchase. There are numerous ways an owner can carry financing. 

And, yes, you can, technically, sell something you don't own. When you market for sale a property you have "equitable interest" in, you are attempting to sell something you don't yet own. That is exactly what wholesaling is.

 No, that's NOT what wholesaling is.  When you wholesale a property, you are NOT selling the property...you are selling the PA you OWN for that property.  Big difference.

When you do a sandwich Lease Option, you are NOT selling the property, you are selling the option contract you made with the seller to buy that property...which you do own.

You can't sell what you don't own.  If you try to sell the property, and the actual owner does too, who in the end has the ultimate right to buy that property?  The person you sold the property too, or the person the owner sold the property to.

Before you say you have first right through a contract, I will have you re-read my first paragraph.