So, what exactly is a “Master Lease Option Assignment“?
To keep things simple…
An Option Contract gives an investor many of the same rights as ownership without actually ever owning the property.
In the legal world, its called – EQUITABLE INTEREST.
When you sign up a seller using an option contract, you gain an ?equitable interest in the property, which allows you to then list it, market it, sell it, or lease it for a profit.
Here’s an overview of how it works:
1. Locate a motivated seller with little or no equity. Finding sellers is super easy, and they can be found from a variety of resources.
2. Agree on terms – Use the Letter of Intent found here >>
a. You get the right to market their property – need to get an interest in the property –
equitable interest in the home because you don’t own it.
b. You don’t need to negotiate the terms – just ask what they need out of the deal.
c. The Letter of Intent has all the details of the deal in one place.
3. Hand the Letter of Intent to the attorney/title company.
a. The attorney will generally charge about $500 for the work (paid by the buyer and the seller). It doesn’t come put of your pocket at all.
b. You can find a good attorney if you talk to any local title or escrow company. They all know real estate attorneys.
c. The attorney will do the rest, including preparing the rental agreement and option to purchase.
4. Find a buyer. You have to be sure and qualify the buyer. This means running a credit, criminal and employment check. You can even have the buyer pull his/her own credit scores and provide them to you.
How to find them?
b. “No Bank Qualifying” signs.
c. Your buyer’s list.
Tell buyer you have a pre?negotiated agreement with the seller.
5. Tell the buyer the terms that have already been agreed on.
6. Have the buyer meet with the attorney to handle the “assignment.”
7. Close the deal:
a. Escrow assignment, auto draft summary, disbursement settlement, broker’s lien, and investor assignment.
b. Seller, investor and buyer meet at attorney’s office to sign all the paperwork.
And thats an overview of how it works step by step.
Wanna get see some case studies of actual deals using this strategy?
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