Lease Purchase (by Steve [OH]) Nov 10, 2018 1:59 PM
Lease Purchase (by Richard [MI]) Nov 10, 2018 2:23 PM
Lease Purchase (by Vee [OH]) Nov 11, 2018 6:35 AM
Lease Purchase (by Scott [IN]) Nov 11, 2018 7:38 AM
Lease Purchase (by Scott [IN]) Nov 11, 2018 7:53 AM
Lease Purchase (by Vee [OH]) Nov 11, 2018 9:14 AM
Lease Purchase (by Mickie [OH]) Nov 12, 2018 3:49 AM
Lease Purchase (by Bob [GA]) Nov 15, 2018 4:56 PM
Lease Purchase (by Steve [OH]) Posted on: Nov 10, 2018 1:59 PM Message:
I have a house that needs rehabbed. I'd like to do a lease purchase to a handyman. I've never done one
like this so I'm looking for input on how to structure the.
deal. If the work is done well, the value could easily be
doubled.
--75.187.xx.xx |
Lease Purchase (by Richard [MI]) Posted on: Nov 10, 2018 2:23 PM Message:
Give an OPTION to purchase and a SEPARATE lease.
Do not mention the other in the documents.
If it goes bad, and most do, the option is forfeited and you evict based on the lease only.
Any purchase language may create "equity" in the opinion of a court and then you may have to foreclose which could take a long time and be expensive.
Just do an option. Get a good option consideration, not $500 or 1K. Get as much as you can. If you don't get a good amount, it will just be treated like rent and the tenant will just walk away after not paying.
In the option, put a series of completion points that must be met and a time to do these. You do not want them to drag their feet and do little.
If you are apprehensive, try to get a performance and completion bond on them. Then if they don't do their part, you file on the bond.
--23.121.xx.xxx |
Lease Purchase (by Vee [OH]) Posted on: Nov 11, 2018 6:35 AM Message:
The equity can not go past 23 months or 20 percent, in OH they are now owners and you must foreclose - the time for this court operation if no extensions are granted is 18-24 months, not a recommended idea here. --76.188.xxx.xx |
Lease Purchase (by Scott [IN]) Posted on: Nov 11, 2018 7:38 AM Message:
I just want to add an example to Richard's excellent advice. I tried a rent-to-own deal a few years ago. I got a large down payment. When the tenant lost his job, he stopped paying rent. My attempt to evict in small claims court was rejected by the judge because the contract value (value of the house) exceeded the small claims limit. I would have to hire a lawyer and go through a costly and time consuming process in a different court. Fortunately for me, the tenant vacated voluntarily. He could have dug in for a long time. I should have consulted a lawyer before doing that deal. --107.141.xx.xxx |
Lease Purchase (by Scott [IN]) Posted on: Nov 11, 2018 7:53 AM Message:
Vee,
Doesn't Richard's suggestion circumvent that problem? --107.141.xx.xxx |
Lease Purchase (by Vee [OH]) Posted on: Nov 11, 2018 9:14 AM Message:
Not in a court of law. --76.188.xxx.xx |
Lease Purchase (by Mickie [OH]) Posted on: Nov 12, 2018 3:49 AM Message:
Vee's right. I looked at doing it at one time and after looking at the law decided against it. --174.233.xxx.xxx |
Lease Purchase (by Bob [GA]) Posted on: Nov 15, 2018 4:56 PM Message:
Consult with an attorney and realize that any handyman worth his salt has all the business he wants, should be making good money and doesn't need a lease-purchase.. I'm trying to buy a run down house righty now where the owner did the same thing. Handyman tenant hasn't done squat and the owner wants him gone. --104.176.xx.xx |
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