I’m starting a brand new video series on my blog with your most recent questions.
A lot of real estate agents use my system, but it works for folks who don’t have a license as well. Watch this video so you can learn how to buy and sell properties with no down payment and no bank qualifying and not get in trouble with the law.
It may save you a whole lotta grief.
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Read Transcript for “Sell A Lease Option For Quick Cash Without A License”
Welcome to my new question and answer video series. Over the next few weeks, I’m going to be sending out some videos answering questions you guys have sent to me to help you move forward in your real estate investing process. The first question is from Julie Otten who is an American living in Norway doing business here in the United States.
“I have a signed lease option agreement with the seller. I intended to find a lease option buyer but I may have a cash buyer. How do I get paid legally? For example, the seller wants $145,000. I had the sale price listed as $149,000 so that I could take my lease option fee off the top and get the seller $145,000. Do I ask the cash buyer to first write me a check for $4,000 and then a separate check to the seller? How does this fit in with closing the property? I have no agreement signed that states that I’ll take the fee or find a cash buyer, only a lease option fee memo that I signed with the buyer.” – Julie Otten, Norway
Joe: The way you describe it is almost exactly the way you need to do it. It’s just a matter of how you set up the paperwork. You have a principle interest in the property because you have a lease option memo, so now you have to go back to the seller and say, ‘Look, I’ve got somebody who might buy it for cash. What we’re going to do instead is set it up as a cash purchase to this person.’
Joe: Then, you take the new purchase agreement for $145,000 between the seller and the new buyer and close that with a title company with that person. They may need to get a new loan. Most of the time in these situations, the buyer is going to need to get a new loan.
Joe: Then, you’re going to have a separate assignment form between you and the seller for $4,000 and they’re going to pay you $4,000 outside of escrow or at closing, so it can sit in an escrow and then be released to you when it closes if they feel more comfortable doing that, depending on the seller. Alright, I hope that answers the question. Good luck with it.