I need to set up a Lease Option...HELP!

[AIR]

Hey guys,

Happy Holidays to all. So the lady who is going to rent my place has expressed she would like to do a lease option. She had originally agreed to pay one year rent upfront at 1100 a month. When she looked at the place she mentioned she would love to eventually buy it from me.

I called my realtor and explained the situation, she told me she had experience with lease options. She could draft it up for me and execute the sale in a one year time period. I thought this was great, until she told me I would pay 3% commission. I had expected to pay a one time fee for setting up the lease option since I had essentially found the buyer etc. I told her I would think about it and get back to her.

CAN I DO THIS MYSELF???

I have been looking the past 15 mins through google for a real estate attorney. Would this be a wise move? I could pay the lawyer to draft it up until I feel more comfortable doing it myself.

HOW DO I STRUCTURE THE DEAL???
How long is the option? What is the norm?

I think a price between 130-140K is fair...but how do I present this to the buyer? Do I supply comps? Negotiate?

If we had agreed upon one year rent upfront, could I use that as option money? And also charge monthly rent?

better yet... how should I set up this deal? Charge more rent per month? Take the year rent upfront and then charge an additional "rent towards the purchase" say 100-200 to go toward the down payment?

monthly rent: 1100
security: 1000
price: 130-140
length of lease option: ???

[JR_FL]

Air,

I can fill out a lease and option agreement blind folded these days. Do I? No. I will set it up with my lawyer to do it. Now Tenant pays for it. Since they are my forms and he has blessed them all he charges is a $125.00 closing fee.

I still do the prescreening and so forth.

[gelokron]

Send them to your lawyer the guys above are right. What i would is take the year rent upfront. Charge a few thousand for an option fee ( the right to buy the house). Look at comps to figure out a fare purchase price( go for a premium first and see what she says). What i would use is a purchase agreement, lease agreement and an option agreement.

[Always_Growing]

Hey JR_FL,

Is your lawyer in Brevard? If so, do you mind sharing his contact info? I am looking for a lawyer to work with in the Melbourne area.

Thanks!

[JR_FL]

Not Brevard. Indian River.

[AIR]

I have an appointment with a lawyer tomorrow. How much should I expect to pay?

[AIR]

well the appointment went well, the lawyer drafted it up and it is ready to pick up tomorrow. He also reviewed my game plan for investing, told me the entity I established was perfect. He told me I practically did everything perfect on my first investment. He even gave me a few pointers on foreclosures in our county. I was very pleased to hear all this great info. I called my future tenant that day...NO ANSWER... sent email...NO RESPONSE...next day same routine. Im kinda ticked off now since I spent all this time and money preparing the lease option that she verbally agreed to. Frustrating!!! Looks like im going back to the drawing board.

[Debbie]

Great job Air! It's a great compliment hearing from an attorney, isn't it?

Don't worry about that potential tenant. It happens to us ALL THE TIME! Never assume the interested party will stay interested.

[kkemper]

in AZ, RE brokers [i am one] are limited
attorneys. I can help you for free.
I presume the AGENT meant that she earns
3% WHEN the lady leasee buys the house.
not before then.

ask her Broker what he charges to write
a lease!

[AIR]

300 for my attorney to draft it up

[Debbie]

300 for my attorney to draft it up

Not a bad fee.

[Manofprinciple]

Let me suggest that you use a Land Trust to protect your interests and your property. I can assist you with that if you would contact me via email at donaldshorter@hotmal.com

[Manofprinciple]

What do you think a land trust would protect?

In simple terms, by placing the home in a land trust the buyer is not building gaining interest in the home which protects the sellers interest in said home.
The buyer will be made a party to the trust and will be given a small interest in the trust (NOT THE HOME) which makes the "EJECTION" process much quicker and simpler than an eviction. The seller could opt to sale his entire interest in the trust to the buyer at the end of the least and escape paying ANY capital gains tax all together; because the deal would be a sale of PERSONAL property and not a sale of REAL ESTATE.

There are a whole lot of benefits to the seller as well as to the buyer. These are just a quick few. The land trust allows for all of the creative financing techniques and afords the seller added protection from the fall out of those techniques.

[mike_mn]

In simple terms, by placing the home in a land trust the buyer is not building gaining interest in the home which protects the sellers interest in said home.
The buyer will be made a party to the trust and will be given a small interest in the trust (NOT THE HOME) which makes the "EJECTION" process much quicker and simpler than an eviction. The seller could opt to sale his entire interest in the trust to the buyer at the end of the least and escape paying ANY capital gains tax all together; because the deal would be a sale of PERSONAL property and not a sale of REAL ESTATE.

There are a whole lot of benefits to the seller as well as to the buyer. These are just a quick few. The land trust allows for all of the creative financing techniques and afords the seller added protection from the fall out of those techniques.

Man,
I have yet to see a case against an NARS EHT that was done properly to the letter of their process that a judgment has been found against an investor beneficiary. From the explaination of the Ohio guy that got screwed, I can see he did not fully understand the process.

Keep in mind, in our society, anyone can sue anyone for any reason at any time. The problem with the EHT system is that it is complicated(case in point, the Ohio guy didn't seem to know he was doing the process wrong). If someone sues you for organizing the deal that they felt they got screwed on, whether or not you own the property or not, you are a party to what ended up happening and the suit will NOT likely be thrown out. Thusly, you will incur attorney fees and you will likely lose in district court. I am guessing that a properly structured EHT will hold up in an appellate court, but it remains to be seen. What I know is that innocent people can still end up being screwed because they can't afford to defend themselves in a suit. Or, they end up losing money because of a suit they win...Even if you win you lose.


Air,
Sorry to muddle up your thread, but I have definitely have an opinion on Gatten.