Cooperative Lease Options

[Sean Integlia]

Hello All,

Was looking at these after purchasing the King Cooperative Purchase System. He includes the contracts, but only shows how to fill out the main one. Process is,
1. Locate seller with little or no equity.
2. Full disclosure Coop Lease Option, where you get 90 days to try to get a tenant buyer to pay 3% to you a assignment fee to assign your lease option. This gets credited to the selling price, but your only paying 1-10 bucks for the option from seller. Option is non exclusive.

Ex. Seller wants 100k, you make the sale price 103k and take the 3 k.
3. Once tenant buyer is qualified, execut a lease and option to purchase between seller and yourself to have something to assign, then assign away. The question, which the owner of the course has not answered is do I put the $10 that I got the option for in the coop agreement, or the 3k that I will be collecting in the option price section of the option to purchase contract ?

Thanks,

Sean Integlia

[William Bronchick]

This looks, feels and smells a lot like a listing agreement. I've run this by my state commission in CO and they clearly said they would go after someone doing this.

On the other hand, a sandwich lease/option would be fine because you are in the middle as a principal.

The main difference is that you are at risk. In the co-op scenario you are putting nothing at risk.