How to Sell a Lease Option flip

Question

Hi, everyone! I have a house that I acquired through a lease option. The owner knows that my intention is to fix it then sell it. I have a specific purchase price with the owner and am about to complete the rehab on the house and will be ready to list it on the market soon.

I've been talking through various options on how to structure the listing agreement with my realtor because I am not on the deed, but have a lease option agreement. The owner is 100% compliant on doing whatever I need to do to get it sold except for he does not want to be the one on the listing agreement (he doesn't want to be held liable for any of the work that my team and I did).

What are my options to get this house on the market? Thanks in advance!

Bill Gulley · Answer

Just a few comments, nothing else to harp about:

You have a real mess going on there.

You didn't learn about basic RE before you jumped into a deal.

You're a tenant, no Realtor can list with you if they wanted to.

Your option only gives you the option to buy, you don't own anything in that property. Tenancy gives you no right to make repairs.

That owner already has a liability with you and your "team" in there doing work.

If permits are required, you may be doing unpermitted work, the owner may suffer for that.

You can't get permits in the name of an owner unless you're a contractor.

Spend the money you have for repairs on an attorney, buy it, do a few less repairs and be more selective in what you do. Then list it as an owner.

Brian, wow doesn't describe this, more like holly cow what is going on! :)

Brian Gibbons · Answer

You are improving a house you do not own.

Wow.

Bill Gulley might want to chime in here.

I would go back to the owner and buy it on sub2, do the work, and sell it.  Whatever the seller wants, you could give them a note and a mortgage/D O T for what $$$ they want, which former owner gets upon re sale.

You are not the owner of record, and many agents will not take a listing from a TBer.