Lease Option then Land Contract

Lease Option then Land Contract

Bethlehem, PA · Member since 2009 · 46 posts · 1 vote

I'm still trying to learn as much as I can but I was just wondering...
If I could get a property on a Lease Option then in turn get someone to purchase it from me on a Land Contract with baloon then....

1. Is that legal since I wouldn't actually have the title even though title wouldn't transfer right away.
2. How would that work when my buyer excercises the buy...would it be a double close?..Would they even do a double close since I wouldn't have the funds myself to excercise my option (because I'd be using the money from my buyer)? Or would I assign my lease option when the baloon is up?

Any help would be appreciated.
Thanks,
Rich

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  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    17y

    I don't think you could do this because, as you note, you don't have title. If you buy on a land contract, you could sell that way. But if you buy on a lease option, you would have to sell using another least option.

  • Bethlehem, PA · Member since 2009 · 46 posts · 1 vote
    17y

    Thank you Jon. Now if I would L/O the sub L/O when it came time to close would I have to do a double closing? When my buyer excercised their option.

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