All Forum Posts by: John Jackson

@Account Closed Despite what you have read here, TX law does NOT require a lease option to be recorded...that is for a contract for deed..The information at Lonestarlandlaw.com regarding lease options is also incorrect..David, the attorney on that site is incorrect.  I actually teach attorneys, so I kind of know the law.  Yes, you would simply evict as normal since the option has expired.  Now, what happens once you file the eviction, as far as what this tenant will do, is unknown obviously, but yes, at this point you would simply evict.  

@Danny Webber We do lease option assignments, so there are lots of benefits, regardless of the state you are in. 

The owner gets full price, no commissions, the Tenant/Buyer gets a house that they couldn't get a loan for at that time to do needing some time for finance, and we get an assignment fee. So it's a win/win.win.  We don't do SLO's in TX, as we don't have fee simple title, the original owner does. 

@Account Closed  We only go 1 year on our LO's.  I agree, all attorney's are not created equal. I have actually had attorney's buy my TX LO CD back when I had everything on a CD.  

@Greg Perkins  Yes, it makes a great opportunity if almost no other investor is doing them. Having a license can be a good or bad thing. TX has no promulgated contracts so as an agent you must use either promulgated contracts or contracts drafted by an attorney.  Ours were drafted by about 3 different attorneys, which is why they cost so much in the end. 

With LO assignments we can work with leads that wholesalers can't, so we actually pay wholesalers for leads that don't have enough equity for them to work with.

Sorry to correct  you @Account Closed TX has specific laws about LO's, and they can be found in Title 2 CH 5 of the Texas Property Code. I wrote an entire booklet on the subject. You'd have to research me to find more info.  YES, you can do a lease option if the owner has a mortgage. The law even says so! Title 2 CH 5 Sec 5.085 is very clear that you can do this. We do 1 year lease options.  

You don't however want to exceed 3 years, then it becomes a contract for deed.  

Sub-2 is totally legal as well, but I don't recommend them if you are just getting started, as no you are on the hook for someone's mortgage payment. 

Here's a good rule...if you are just starting out, don't do a SLO. 

Get about 10 or more assignments under the belt so you understand the structure of a lease option. 

Hey @Brendon Rogers I was just down in your neck of the woods speaking to the RGV Real Estate Club! If your attorney says he does LO's to avoid the DOS, then you may want a new attorney. Almost every single Deed of Trust states that the bank has the right to call the note due if the property is sold, transferred or entered into on a lease purchase. Having said that, there really isn't such a thing as TRIGGERING the due on sale. I've done well over 600 transactions and no issue. I do know a RMLO that has done massive amounts of owner finance and only saw 5 notes called due. They were ALL with the same little bank. So really nothing to worry about to be honest.

Hmmmm...well...you can just go to our website leasingtobuy  there are a number there. 

These are all assignments but same basic numbers 

Before the final bill, there were amendments presented to the floor, thanks to Rep. Parker out of Beaumont, and it stated only very very specific sections of TPC Title 2 CH 5 applied to a lease option between 180 days and 36 months. 

@Jay Dean Well....you want to structure it for the buyer's success, but yes, they are much much more motivated because they have the right to purchase it, so I just want to caution noting the benefits if they DO NOT purchase. We structure a 12 month lease option, with the goal of getting them financed within 8-10 months. Also, we don't increase the rent because we are only looking at such a short period. 

@Greg H.  Those items are required for a contract for deed. Although, per TPC the property must be platted. 

Also, don't go beyond 36 months on the LO