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Buyer Options

The following are some example packets we’ve put together for buyers.

They involve buying a property of your choice. You’ll need:

  1. 25% Down
  2. 5 years tax returns
  3. Other if/as needed by funding source.

Packets types:

  1. Rent w/ option to buy – no option monies up front.
    • Rent can change.
    • No rent will be applied to eventual purchase.
    • Owner can sell to another anytime.
    • Owner can increase rent or reclaim property.
  2. Lender buys/ resells to a ready end user buyer on land contract.
    • Requires property to be free and clear underlying due on sale mortgages.
  3. Buy/ Lease w/ Option to Purchase.
    • If underlying balance, then that amount is required to be paid in order to exercise:
      • EG: Investor pays 100k, puts (30% for investment property) $30 down, leaves 70k bal.
      • Buyer will pay $125k, puts 25% down aka: $31K (already paid as non refundable option money), leaves bal of 100k. For this buyer to exercise the option, they need to apply another 70k – retiring investors mortgage – leaving a balance for this buyer of $125k – 31k – 70k = $26k
      • It may be best for the buyer to option his/her purchase within first 3 yrs of contract via getting a mortgage to payoff seller/investor.

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PLEASE SEEK THE ADVISE OF YOUR LAWYER, TAX ACCOUNTANT, LENDER, INSURANCE AGENT, AND OTHER PROFESSIONALS. WE ARE NOT OFFERING THIS TYPE OF ADVISE BUT SIMPLY NOTING ITEMS HERE FOR CONSIDERATION WHEN DISCUSSING THESE THINGS WITH THE PROFESSIONALS OF YOUR CHOICE.

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