[Garrett Humphrey]

Garrett Humphrey

Jackie,

As a newer investor, I tend to get analysis paralysis when it comes to Creative Deal structuring. I know that there are a lot of variables that go into structuring a creative deal, but could you provide a basic template for 3 different offer options that could be used until I become more comfortable?

I think it would be helpful to me and others. Thanks.

[Garrett Humphrey]

Garrett Humphrey

That all makes perfect sense, plus it is nice to offer multiple structures. Thanks!!!

[Garrett Humphrey]

Garrett Humphrey

Jackie,

Thanks for always responding so quickly. I have one more question.

Wouldn’t the “Due on Sale Option Agreement” also give the seller confidence because if I fail to make the payment, the Option may be cancelled by the Optionor/Owner without having to go through a messy Foreclosure?

Also, the mortgage and deed would stay in the owners name until I decide to excercise (Control without Ownership), although I would have possession of the property.

I’m just looking at multiple ways to structure these types of deals in the event that an owner is uncomfortable with one scenario. Please advise at your earliest convenience. Thanks.

[Garrett Humphrey]

Garrett Humphrey

Thanks Greg! I don’t see the lease though. I would like to view if possible.

[Garrett Humphrey]

Garrett Humphrey

Jackie,

Could you direct me to the lease that you use when doing Master Leases? Thanks.

Garrett Humphrey

[Garrett Humphrey]

Garrett Humphrey

Thanks Jackie!

Since I did offer those terms in the beginning, if I did bump the rental rate up just a little I could then renegotiate the terms that I already offered.

For example, ” I will give you $2000 per month rent, but I will only pay rent if I receive rent and lower the repair threshold to $50.”

I was also going to use the following contingencies:

*This agreement will only become effective if I secure a resident for the property on or before ______________, 2019

*Should tenant default on any payments required by this contract, all of the tenants rights to occupancy or possession shall revert to the landlord and all monies paid to the landlord shall be retained as consideration for the execution of this contract and as agreed liquidated damages in full settlement of any claims for damages.

Do you think these would cover my risks? Are there any additional contingencies that you would use?

[Garrett Humphrey]

Garrett Humphrey

Jackie,

Thanks for the fast response.

Would you Lease Option the homes or go with a straight Master Lease?