1st Deal Complete!

[Garrett Jacks]

Hey BP,

So I just completed my first ever deal. It was a Lease Option Assignment, and I couldn't have gotten through it without the support of this community. Thank you @John Jackson and @Brian Gibbons for showing me the way. You guys rock! And so do lease option assignments!

[Garrett Jacks]

Here is how it all went down:

The seller was a guy I work with. I knew he was moving out of his house in May, so I figured ii'd explain the financial benefits of selling with a lease option to him (no 6% agent commission, and positive monthly cash flow!). I then contacted my attorney and sent him my contracts via email. I used the following:

1. A lease (1 year term)

2. A purchase option: Stated the buyer could purchase at any point during the 1 year term, the agreed upon sales price of $215,000, and the non-refundable option consideration of $6500. It also included a seller concession of $3600 (justified by the sellers mortgage of $1200, and rent payments of $1500 over a 12 month period... And the paperwork said "seller concession"... Not rent credit. But essentially that's what it is.

3. An addendum to the lease and the option: Contained a Right to Cancel clause, the fact that my assignment fee was the non-refundable option consideration, and that I would be granting $1000 of my fee to the Seller upon assignment (I described it as a "thank you for allowing me to do the deal" to the seller)

Signed the paperwork. Posted an advertisement to Postlets.com. Within 24 hours the phone started ringing. He first callers were actually the eventual buyers. They were a family that had unfortunately been victim of a short sale about a year and a half ago, so they weren't in a particularly good position to obtain a loan at this time. However, they made more than 3X the rent amount in monthly income and their credit and background check was outstanding (used Smartmove by Transunion for this after showing them the house on Sunday morning where they filled out my Lease Application).

Next, I called and set up the closing with my attorney. I took the following paperwork to the attorney's office:

1. Lease with seller and buyers names

2. Purchase option with seller and buyer names

3. Addendum 2 to the lease and the option: stated that I could assign the deal to the Third party (the buyers names). Signed by the seller.

4. The Assignment agreement between me and the seller.

All in al it took 7 days to close the deal.