All Forum Posts by: John Jackson

@Matthew Carducci  Carducci...is that Italian?  Hmm..an Italian in New Braunfels!  I like it! 

Even if you aren't in TX if you aren't familiar with lease options then there is a lot to consider to make it successful for the buyer and of course for you.  I'm guessing this is a house you own?

TX has specific sections of Title 2 CH 5 TPC that apply to a LO longer than 180 days and less than 36 months. 

There is verbiage that is required in the docs, mortgage information must be given to the TB, Any lien on the property must have been obtained to purchase the property, so no HELOC, The seller must have fee simple title, so no SLO's, no biggie there, and there are other things such as the seller can't charge more than 8% of the monthly payment for a late fee and other things. Unless you are going to do a ton of these like I do, it's not worth your time to pay an attorney to draft docs really. My docs over the years have cost over $30k, but it was worth it to me.

@Jerry Starkey 1st, I never take a deposit on a LO. They pay me an assignment fee (AKA option fee)

2nd if you are giving them a rent credit out of each month that the buyer will use toward the down payment, you have to have the $200 in separate funds, otherwise the lender will baulk.

We simply offer a seller concession and it is applied to the buyer's closing costs.

@Chris Silvas  @Randall Jacobs   Chris I haven't been to BP in quite some time. 

In TX, you can do a straight LO or an assignment, but you can't do an SLO, as you won't have fee simple title. 

Also, the info on lonestarlandlaw.com is incorrect regarding LO's. 

@Ismael Delgado  The property does NOT have to be free and clear, but the seller must have fee simple title, which is how we hold title in TX. 

Also, contract for deeds are almost unheard of after the tornado of may 2000 that wiped out a number of contract for deed properties and the investors weren't carrying insurance. 

That is when an attorney I know (won't disclose his info here) worked with Mike Moncrief to tighten the laws of a contract for deed. 

But you are looking at a lease option. 

Not the same thing. 

BUT, the law does require the seller to have specific verbiage in the contract. 

If you are the buyer then you want to make sure the contracts conform to Title 2 CH 5 TPC. 

Ours do. 

Also make sure the owner gives you the mtg. info and the mtg company has received an auth to release. 

I'm not crazy about David Willis's website as he is confusing a lease option for a contract for deed. 

The law is very clear which sections apply and don't apply. 

@Chris Mcdaniel  Actually Dodd -Frank (2 idiots) didn't come into play till 2008 as I remember .

In 2005 Texas was the first state to address LO's. Many attorneys don't even understand the law, and I have to explain Title 2 CH 5 of TPC to them

They confuse a contract for deed with a lease option. 

I don't have attorney's in Houston but in the North TX area

@Craig Bowen    me.... :)

@Adrian Reyes  @Esteban Flores   I'd suggest reaching out to David Fair down there. 

He's a great guy and runs the RE group down there.  Tell him I recommended you all reach out to join his group. If you contact him also tell him you find me highly intelligent and moderately attractive. He'll get a kick out of that. 

I spoke there last year but I've known him a few years or more. 

onestopREI.com  is his site