Option
with Payments - Continued
Why
not offer to assign the payments to the real estate owner
for an option over a period of time until you can obtain financing.
If you cannot make the deal work, then there would be a time
where the option would expire and the payments would revert
back to you.
Of
course, you could also just make your option in the form of
monthly payments directly to the seller, and have the amount
you are paying equal the monthly payments you are receiving
from the note. In other words, the payments you are making
on the option, will be the same as the payments you are receiving
on the note. This is a form of compensating notes. Be sure
to get the option notarized and recorded, or at least a memorandum
of an option.
Another
slant on this technique is to offer the entire note as an
option for a longer period of time. You would have a problem
if the note went bad during your option period. What would
you do? You would have to guarantee the note payments should
the payor quit paying for some reason. Notice I said guarantee
the payments, and not guarantee the note. You would then only
have to come up with the payments to keep the option alive
should the note go bad. This is a far cry better than having
to come up with the entire amount of the note.
For
those who are doing the lease option technique, if push comes
to shove, you could use this as a technique, but generally,
those sellers who would accept a lease option technique are
motivated to the point where little option money is needed.
However, this still would be a lucrative technique. Instead
of giving the seller a couple of grand for the option, merely
assign the payments to your existing note, or create a personal
note that would match the payments received from your note.
This is a cheap way of getting your option.
As
always, consult an attorney and CPA. I cannot emphasize this
enough.
Try
this technique, contact the Professor, and tell him how it
worked.
ANNOUNCEMENT:
My last April seminar was a sell out, and a few were even
turned away because there were no more seats. Some have requested
of Cathy Crowe that I repeat my seminar. I will be giving
a repeat seminar on THE ABCs of NOTES and REAL ESTATE on Saturday,
June 25th, from 8:30 a.m. to 5:00 p.m.
Because
this is a "hands on seminar" where we cover everything
from from how to use a financial calculator with ease, to
structuring note deals to create wealth. We will also cover
getting notes for free to put in your IRA. THE CLASS WILL
BE LIMITED TO 20. You will need to bring a HP 10BII financial
calculator to class, unless you are familiar with another
financial calculator. I will be teaching with the HP 10BII.
I will be teaching from THE NOTE PROFESSOR NOTEBOOK, which
you can purchase at the discounted price and have it sent
to you prior to the seminar, if you contact me directly.
For
details on the seminar, contact Mayra@dfwrein.com.
Of course, you can always contact me.
I
look forward to seeing you there.
Tom
Henderson a.k.a THE NOTE PROFESSOR
tom@hpnotes.com
214.575.8292
1.800.481.6588
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