All Forum Posts by: Adrienne Bryson

Thanks @Steve Vaughan!  I will adjust my search.

I'm not necessarily looking for a "no money" option.  I just want to have enough of an understanding to 1) explain this option to my seller if the purchase price is too high for me and 2) be able to do everything legally and morally.  I'm not trying to cause more grief for my seller!

Oh... If anyone has suggestions for podcasts, specific links to forum topics/blogs/websites/ebooks/whatever on the topic of wholesaling lease options, that go over more than the bare minimum basics, I would definitely appreciate it!

@Bill Gulley I read through 5 pages of forum topics with the search criterion of "wholesale lease options" before even posting this question.  I am no stranger to doing my own research.  However, having searched through the forums, blogs, and outside of BP, I have been so far unable to find a full explanation of exactly how it works.  LOTS of articles just covering the basics, LOTS of websites that give an outline of how it works then direct to a page to pay $100+ for personal tutoring, LOTS of topics saying "what can I do" and the response being "lease with options" and the conversation ends there.  LOTS of other people asking questions about lease options and nobody even responding.  I've even read a couple topics where each sort of answered a couple questions, but the answers were contradictory so I'm right back to square one of not actually knowing what's what.

I am still researching, but I foresee the possibility of using a lease option with one of the leads I'm working on now so I was really hoping to have this tool in my metaphorical toolbox before I meet with the seller and make an offer.  I would hate to walk away from a motivated seller just because I can't find a clear answer.

Hopefully one of the more experienced investors will give a newbie a helping hand.

So I get the general concept of wholesaling lease options.  It's basically the same as "regular" wholesaling except you're dealing with rent to own rather than outright purchase, and your end buyer is going to be a retail buyer rather than an investor.

But I have some questions about the mechanics of the deal...

1) When you put the house under contract, are you actually entering into the lease?  Will you be expected to make lease payments, pay a security deposit, etc?

2) When you assign the contract, does the end buyer have to make a down payment, or a security deposit?  If so, does that basically mean the end buyer will need a fairly large amount of cash in hand at signing?

3) My understanding is that there is no closing (at least not that the wholesaler is involved in), only lease signing.  If this is the case when does the wholesaler get paid?  At the time of assignment?

4) After the contract is assigned, is that the end of it?

Andrew I never thought of talking to the letter carrier about abandoned houses... Brilliant!

Anybody?  The house itself is not going to be worth much but I'm sure that acreage with horses and all is worth something.

Look at hundreds of deals, not hundreds of good deals.  The idea is that if you look at enough houses, you will be able to spot a good deal when you see one.

By looking through MLS you now know that most houses are overpriced. So if you were to go on today and see an average house for half the price you'd expect, you would instantly recognize the opportunity. You know what neighborhoods to avoid, you know which types of houses don't sell, you know what the market is like...

You've pretty much already done what you thought was impossible!

The first contract is a Purchase and Sale Agreement, that you sign with the seller of the house.  This contract needs to have verbiage that makes it assignable, unless you live in a state where all contracts are assignable.

The second contract is an Assignment Agreement, that you sign with the end buyer.

Alternatively, if you do a double close the second contract would be a different Purchase and Sale Agreement, that you sign with the end buyer.

All of these contracts are available here on BP.  You can also find templates for free online.  BUT don't just use a random contract you find on the internet... Edit it to suit your needs then have it looked over by a real estate attorney.  Or just go straight to an attorney and have them draft you one.

Bump for the morning crowd :-)

Sounds to me like the neighbor has a "dream" of buying the house but isn't in a position to do it now.  He might not have even spoken to the owner about buying, he is just "planning" or "hoping" to be able to buy it in 5-7 years.

Contact the owner.  The worst thing that could happen is she'll say no.  Of course there's also a good chance she'll sell it.  Who knows, maybe the neighbor would be interested in a rent-to-own situation!