OfflineHey DG Family,
I have a question which I believe I know the answer to, but wanted too run this by the family.Lets say I find a homeowner who is willing to do a Lease Option with me, then I get a tenent buyer to sub-lease it to.First question will the person I am leasing it from want to run my credit? Next question if I get past that ,what if the person I sub -leased to lose's their job and cant pay, am I now stuck with that payment?
Thanks for any help!!
Curtis
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I have the same question. Anyone that can answer curtis's question will also be helping me out.
Josh
I'm not sure if this will answer your 2nd question if the Tenant losses his Job and can no longer pay.
With a Lease Option, the Tenant/Buyer is not required to exercise the Option and therefore is not obligated to purchase the property. Same will apply with the one you sub-lease to.
This is more of the legality issue and I would sugest to consult a Lawyer. You can also find lots of information regarding this matter on Anita Wilson's Thread or Greg Murphy's. Blessings to all. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
Thank You IRABABAO , I appreciate it!!
something about this but, it seems that if you are the one that signed the lease and are sub-letting it out YOU are the one ultimately responsible for that payment.
I could be wrong, but again, I think I saw that on here somewhere along the way. That only makes sense to me - but again, I digress!
Mike
"Make it an AWESOME day! (Who else is going to do it for you?)" - Mike Spillman
"As long as there is breath there is hope!" - Mike Spillman
You're welcome Curtis. I know it did not answer it but you have one Good Question which lead me to also do some research on that. Thank you also. Blessings to all. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
These 2 option are based on your approach to the seller of the home. one way is to tell a desperate seller up front that you will bring him a tenant but if they don't make payments, you are not responsible. This technique only words with someone who doesn't have any other options. The second is when you agree to take up on yourself the responsibility of the payments until the home sells.
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You can draw your lease option contracts to say that you can put the tenant out in one month if he doesn't pay rent. Then, you get to put another tenant in the property on another lease option contract for another down payment. around 3-10 k depending on the size of the property, so the tenant not paying isn't always a bad thing.
You can make excuses, or you can make money, but you can't make both. -Dean Graziosi