So Brian, You're saying here in NC you shouldn't use a lease option and instead use a lease with a ROFR. (I'm speaking here in the context of lease option assignments). If I have a lease with a rofr signed with a seller then I can flip it to a buyer just like I would with a lease option. And bypass all the restrictive L/O laws here in NC. Right??
I was reading one of your other post here and you said that assigning the L/O was brokering. And you need a license to do it. I'm not doubting that but I have talked to several attorneys concerning L/Os and none ever mentioned this. I wonder if there is any case law regarding this.
Who is Brian? You need to use the @ and a full name if you want to tag somebody @Mike Thoms
Sorrry, I was thinking of Brian Gibbons
Calling @Brian Gibbons
@Doug Pretorius thanks amigo
Last time I talked a my attorney in Raleigh NC she said judges hate lease options, so many abuses
Also to evict a tenant takes money and time in NC
Now assigning a lease option in NC, I would enter into a lease and a rofr, record the lease w rofr with a memorandum, and get a fee to release the lease and rofr, like assigning but different.
@Josh Caldwell can you talk about the value of a Rei recording an option and charging a fee to release the option, vs an assignment?
@BrianGibbons, would you mind PMing me who the attorney in Raleigh is.
Thanks @Brian Gibbons
I love lease options. That is no secret. I can create terms and pass them on to an end buyer with a lease option when there isnt enough spread for me to stay in the deal. The problem is how do you get paid for passing your contractual rights to another person?
Realtors have a lot of political power and they would love to get investors out of the game. We are competition for them, and we make more money than they do, so I can see their point. The current trend is that realtors are working to get legistlation passed all over the US that will make assigning contracts illegal in one way or another. Its already dangerous in PA and OH. So as investors we have once again outsmarted the system.
The new way to do this is not to assign a contract but to register your option at the courthouse and thus, place a cloud on the title, Then we get paid to release our option, so that buyer and seller can have a clean transaction without having to do a quiet title action.
Thanks, @Josh Caldwell. I was wondering how you structure this type of deal with the buyer. Do you tell the buyer that the option release fee will come off the purchase price? (after of course you have raised the purchase price enough to cover your release fee.) Or do you tell that X amount is what it's going to take to get started and go from there? So do you still sigh a lease and an option with the seller or just an option?
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