Lease Option Assignments (AKA Cooperative Lease Options)

[jazlife1]

When you say broker, what kind do you speak of.

Jeff

[frustratedinvestor]

@jazlife1

Jeff, sorry for getting to you so late with a response.

Broker as in, the kind an agent/Realtor works for. A real estate broker.

Hope that helps,

Adam

[HJosephD]

Huh? The contracts, copies of checks, bank statements all show the name of the purchaser and seller and to whom those payments were made to as proof of payment of that "down payment" plus rent credit that is to be applied toward the purchase price. The option payment and rent payments were made to me, not the seller. What am I missing here?

[frustratedinvestor]

Joseph,

All payments, considerations and credits are attached to the house.

However, for sake of being helping you, I could be talking about a refi and you could be talking about a straight purchase. Also, we can't assume what a lender is going to require. A loan officer that is up to speed with the current lender guidelines is the best person to be answer this question. I always pre-qualify the tenant/buyer first with an LO so I know this answer up front since it always changes.

Adam

[HJosephD]

OK, when my end buyer goes to get his permanent financing at the lender, part of his qualifying requirement is to show a down payment and principal credit on his payments, if any but, his "down payment" credit was paid to me as an "option fee" and not to the seller! I'm not in the final transaction so how does he get credit for those payments and the option fee to qualify for the loan?

[frustratedinvestor]

It's the contracts, copies of checks, bank statements etc that show proof of the payment, not you. Money is money, it's got nothing to do with the people involved in the transaction. If they can prove it was theirs, then it was theirs.

Hope that helps

Adam

[TampaGWB]

Great stuff thanks bro.

[frustratedinvestor]

@TampaGWB

You're welcome!

Adam

[californiameltdown]

Can you point me in the right direction to the guy you mentioned: Michael Carborelli???  I would like to check out his course. I am seriously interested in doing co-op lease options and need to know everything! Thanks!!

[scotmoran]

Great clip! I have a solution to your "Brokering without a license in Michigan" challenge. I am an attorney and specialize in real estate contract law. I do more than 300 contracts a year. I'm also a REALTOR with advanced certifications and awards from the National Association of REALORS (NAR). Call me (214) 757-6434 and I'll let you know how it's done! Keep up your good work! Excellent!