Paperwork -Now I've done it

4 Replies

Hello I have been listening to all the podcasts (in my car/office) but not said hello yet, i'm from Washington state, even heard Brandon in Poulsbo Wa (PODUNK WA) I have had a house under contract for some time now 6 years or so, when I paid the arrears I also took 6 months off to remodeled it , (never again, learned a ton though) I obtained it subject to existing mortgage, I sold it once Lease option, got it back, rented it out about three times, I repainted the inside (third time) last week put a FSBO sign in the yard and have sold it rent to own to a nice couple with $10,000 down and $140,000 sales price. ( I meet with them this Saturday) They have agreed to $1080 per month (I didn't say anything about interest rate but i think that is about 8%. I would love to make sure the paperwork is right this time (last time purchase/sale agreement from internet lol ) So looking for some help with paperwork (just a favorable purchase/sale agreement or lease option or rent to own ect. Any advise would be greatly appreciated.

Geno

@Brian Gibbons , thank you for pinging me on this.  Your words are too kind!  @Geno Godfrey , when I am the optionor/seller I do a completely separate lease and completely separate option to purchase.  The option is in effect only as long as the lease is performing.  I do not reference purchase credits in the lease (or 'purchase' in anyway), but the purchase price on the option can reduce by the amount of 'rent credit' over time. (i.e. a $200/mo purchase credit = $2400 price reduction EOY1, $4800 EOY2).    I also have the optionee/buyer record a 'memorandum of option' instead of the full option to purchase.  They are still protected, but all terms aren't broadcast to the world.  I am not an attorney, so I can't put pen to paper for you or share my contracts. If I were you, I would put together what I think I should use for a lease, and have an atty look at that.  I would put together what I think I want for my option & memorandum of option and have a 2nd atty look at those. Do not say 'rent to own'. Ever.  It's a lease with separate option to buy. The $10k is 'option consideration', not a 'down payment' (yet).   Now go forth and prosper!  

Washington Landlord Association also has this type of paperwork, and offers telephone help as needed.  I think the membership fees are well worth what they provide.  walandlord.com

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