[Rafael Vazquez]

Rafael Vazquez

Is buying on a lease option and turning around and also selling on a lease option a good idea? I know there’s people out there doing these types of deals but what if the seller that you are lease optioning from for whatever reason pulls out of the deal and you already have a lease option buyer under contract? How can you protect yourself against something like this happening?

Thanks,
Rafael

[DON WEDE]

DON WEDE

Rafael,
To protect yourself disclose the the person who you are leasing to with the option to buy that is your arrangement with the deed holder also. That there is inherent risk in the deal.
Don Wede

[Jackie Lange]

Jackie Lange

You can protect yourself (and your buyer) by staying in the middle of the deal and getting all closing docs signed then held in escrow.

You should collect payments from your LO buyer and YOU should be the person making the payments on the underlying loan if there is one – or to the seller.

It’s not that much more to just buy with seller financing – perhaps subject-to the mortgage – then you will control the deal.

You should never collect the option fee then let your buyer make payments directly to the seller. Too many things can go wrong.