My question has to do with the financing.I sat with my broker today
to work out the option details.His question to me was,how do we show
the lender where the option fee money is coming from, when I credit it
back to my end buyer at the closing?
Hear is my example: A $250K HOUSE that I contract to buy from the
owner for $230k and L/O it to my end buyer for $250k.Lets say I
get $10k in option money and tell my buyer I will credit this money
back to him at closing.When I assign the contract back to the home
owner,how do we justify to the lender where the $10k came from?
Using this technique,I never take ownership of the home.
Thank You in advance for any help!!


Maybe this will help

I think you asked this on another post but just in case you missed what was returned.

I am a little confused as to your post but will try to answer. You are LO from the owner correct? That is how you never take ownership of the home.

If you are talking about giving the T/B a rent credit, it is used as the down payment (if the lender allows it) or to reduce the purchase price. It is simply a credit, paid out of escrow. That is all the title company needs to know.



TWITTER - anitarny / FACEBOOK - anitarny


couple of things

Run the deal through a professional propery management company or basically someone that is third party. This creates a trail around you and is a way to show the bank a reputable company was handling the money. You could probably even do it through a title company where the money was handled through an escrow account. These options will cost you a percentage though-but it is worth it-it basically becomes a hands off transaction.


You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!

Please help! option

For some reason I can't seem to get anyone to comment on lease options. It's probably something i'm doing I thought I would try this forum.

I need to know how to structure a lease option offer.
I'm looking at a duplex built in 06, owned by an out-of-stater.
her original mortgage is an ARM. She said she is going to re-fi...
She wants to sell...Can anyone point me in the right direction??

Lease options

I too had proplems getting past a realitor when I mention LO most just stop talking to you.I found that if I do some reserch and come up with the owners name and contact them directly that I have a much better chance at working a deal than I do threw a reaitor.

lease options

yes def research the properties owners and GET AHOLD of them 1[find out the bottom dollar 2[TALK to them or first LISTEN TO THEM find out their BUTTONS as dean says in his books 3[find out WHY they r selling because you may be able to structure a deal that u never thought possible!!
real estate agents r GREAT but in certain instances they r too busy to pursue your interests or in some cases they may only settle for a set commission and not PUSH for a lower offer.
YOU NEED TO talk to the owner or many owners to get a lease option that will fit your needs good luck and start taking action today!!


Click Here For homepage
need to sell ?
Need me to FINANCE a home ?

im sorry !!

i believe i answered a ? out of place i did not read the first two posts sorry. my answer was to goshen and cathunter sorry dpe911 wont happen again!!


Click Here For homepage
need to sell ?
Need me to FINANCE a home ?

thank you jbtoggs

Thanks for the input.

I have made contact and it looks like she just wants to pull-out of this area. She owns a storage unit business out-of-state...$$$...who knows? maybe she would like to buy and sell properties for a profit...
Q- Do you know how to structure a lease option "offer"? Are there specific forms to use? or do I write the offer up myself in typed form??

She's not yet sure about her asking price, but i'm sure I'll find out soon.

Any info. is greatly appreciated. Smiling



I can write what ever i believe on a napkin,The question is...What i wrote,Will it protect me!


Invest in yourself!

Lease options

A nother reason realitors dont want to handle lo is that they dont want to defer there commission for a year or two but this too can be worked around if you aproch them with a plan.

Lease Options

Typically when using a realtor on a lease option they will receive a portion of their commission up-front. To get around your particular obstacle just offer them both the seller's and buyer's commissions and factor the cost into your profits. I have yet to have any problems using LO's with realtors involved. Most are very open to any fee structure as long as it is profitable for them.

Please refer to pg. 200 of Dean's book BARM. He answers your ouestions. Should you have any additional questions please PM me and I will help you if I can. I love LO's it's a great way to creating massive cash-flow to live off of while funding your REI's. And it is the ultimate no money down deal. Never put money into the deal--I made that mistake once.

Thanks, Keith




southstar & every one else who is interested in LO
I just went back and went threw the secion of lease options in the training center.I picked up some imformation that I had forgottin about every one who is interested in LO should read this lesson and reread.

lease options

Ok guys, I am interested in I believe Lease Option opposed to lease purchase. Ill tell you want I would like to try and hopefully you guys can tell me if my idea will work and if not then why and what details I need to know to get this first deal done.

Id like to lease option a duplex, triplex, or quadriplex and I am assuming the monthly lease payment will be more then the rent of one apartment but less then the mortgage payment for the whole property. So I could rent the other 1, 2, or 3, apartment out to other tenants while I live in the other one, and use the rent money I receive to pay the monthly lease option, renters insurance, and other possible fees(whatever they may be). Do that for 1 to 3 years(the length of the lease option) while using the remainder of the rent payment I receive to fix up all the units, and then assign or somehow sell the property to an invester or someone who likes to buy rentals for a close to market value as the entire property would be in great condition at the time I sell it and would already have paying tenets in place.

Do I seem like I have it right or am I missing something, how would this strategy work out and what details did I forget? Whats the best way to search for a motivated multiplex sellers? What exact paper work with what clauses do I need to make it work and protect myself?

any help would be appreciated,



Establish positive forward thinking and ignore the naysayers.
Green Tree Investments OR LLC
Investing in a GREENER tomorrow


Hello people in REI,
IT is very important to check any property,Even running a OPTION contract!I thought to share the ideal...If the party is in a court aspect(judicial)the true note holder would over-ride you with a lease/option contract.
I learn something everyday off this site!!!!
It just goes to show...You can never take anything for granted.I was thinking to myself this L/O thing is to good to be true,Not taking in account with a L/O it is a secondary CONTRACT!So important to check for liens and bank names.I may have this wrong when it comes down to a mortgage on a property,I believe the loan is the note and the mortgage is the lien?


Invest in yourself!

new at this.

Hello all!

Just got done reading the materials for the second time. I have had the course about three weeks now and besides reading, I have set up a realtor, forclosure lists, property lists and even found a person who started the course earlier , who lives around the area and has completed several deals already. Talk about a motivation factor!! Just had to tell someone! Thanks

I would love clarification on my L/O scenario...

I know that Greg M. talks about this strategy of leasing a property from one person and then leasing it back out to someone else in PFRERN, pg.71. Is there somewhere specific on this site that either Greg (or another person) who does/has done this) explains it in more detail. This would be my first deal and I want to go into it as educated and clear as I can be.

I've contacted a seller of a nice 3BR/2BA home that is motivated to sell. He mentions in his ad he's open to 100% seller financing. So, my question is this, if I work out a deal with him to L/O his property to me then how do I go about L/O it to someone else with no money out of my own pocket.

Any input would be GREATLY appreciated...


really, people arent posting anymore?

Is that a way of telling me that lease/options are not a good idea right now?