Who can HELP me setup a lease option deal?

Question

I have a seller willing to do lease option but I’m not sure how to set it up.

What documents do it need ? lease & purchase agreement?

Is it even a good deal?

They want to set it up today before they list with a realtor...

Elle Oliver · Answer

@Tim HermanSeller wants $219k (I’ll talk him down)Owes $209kPayments $1945 (above rents so no money to make monthly)

Interest rate 4% FHA loan Rents around $1850Comps around $217kMarket Value $223k

Dennis Cosgrave · Answer

You have not specified the terms of the deal so hard to say if it is a good deal or not. I suggest you get a real estate attorney to draft the lease option agreement for you. There is an old saying, He who drafts has control. The lease option clause will be built into your rental agreement. Be sure it specifies all the terms of the option. For example, how much time do you have to exercise the option? What is the agreed-upon purchase price at the time you exercise your option? Are you paying additional rent which is being contributed to your down payment at the time you exercise your option, and if you do not exercise your option, will those excess rental payments be refunded? These are just a few of the factors you need to address. Remember, verbal agreements are not worth the paper they are written on.

Tim Herman · Answer

@Elle Oliver What are the numbers? If the arv is 200k and you option it for 150k,then do it. Do you the ability to sublease? Have you done your due diligence?