In my case, Dan, I was young and "paid in earnest" a ridiculously generous amount with the contract (realtor submitted). The owner was banking on the fact that I wouldn't be able to secure financing "for that type of house" in the twenty-four month term of the lease option. In other words, she was counting on my forfeiting that amount at the expiriation of the "lease." I, on the other hand knew the house had been on a slow market for a long period of time and the seller was "cash poor" as she had another house she really wanted on a contingiency. The "purchase price" we had set on the option was ridiculously low. I was gambling on the fact that an out of town couple had looked at the house several times (two doctors planning to relocate to the area) and simply were waiting to make an offer on the house. My "lease option" actually took it off the market. That couple approached me within a month begging me to sell the house to them. I did, at full price. They paid me the difference and assumed my option to purchase at the previously agreed price. That's why I say the owner was furious with me for I sold at the full price within a month. I netted a $35,000. gain in the month.
"Selling" the option was quite similar to any other real estate transaction as it involved a closing. I recall that I had just filled the oil tank for the steam boiler. Fuel oil was something like $0.89 a gallon at the time. At closing I was paid $2,600. for the measure of fuel in the tank. (Wonder if people take such thing into consideration now? Today it would cost $9,800. to fill that tank. To heat that old barn required over two tanks per season. On subject of lease/option to buy, usually you establish what would be fair market value for rent and the excess payment is applied toward a "down payment." It used to be a creative way for an owner to sell a "hard to move property" and was a way for a buyer to get into a property and accumulate an amount of equity to qualify for a mortgage. Usually that additional amount was forfeited if the option wasn't exercised within the term set forth. (similar to open end auto lease). There were also some tax benefits for the seller as the term of the "lease" the property could be treated as rental property and the "sale price" (exercise price) was often lower so capital gains were less on paper. I don't think "lease/options" are as common today as they were in the early 1980s when interest rates were so high. > From: LWB250 <[EMAIL PROTECTED]> > Reply-To: Mercedes Discussion List <mercedes@okiebenz.com> > Date: Sat, 8 Mar 2008 15:54:38 -0800 (PST) > To: Mercedes Discussion List <mercedes@okiebenz.com> > Subject: Re: [MBZ] OT - Lease-to-Own > > Thanks, Tim. > > How much of premium above what would have been > considered "normal" rent did you pay, and how long was > the lease for? > > Laws vary by state, as in some you cannot sell or > transfer your interest as the lessor. You were lucky > to do so. > > Dan > > --- Timothy Robinson <[EMAIL PROTECTED]> wrote: > >> I "bought" a house once with a lease to own >> arrangement. All of the terms >> were spelled out including the purchase price should >> I want to exercise my >> option. The property increase in value and I >> actually sold my contract to an >> interested buyer. I made the gain on the property, >> market value above what >> my option price was. Needless to say the owner was >> furious. >> >>> From: LWB250 <[EMAIL PROTECTED]> >>> Reply-To: Mercedes Discussion List >> <mercedes@okiebenz.com> >>> Date: Sat, 8 Mar 2008 15:13:28 -0800 (PST) >>> To: Okie Benz <mercedes@okiebenz.com> >>> Subject: [MBZ] OT - Lease-to-Own >>> >>> Anyone here ever sell a home/property using a >> lease to >>> own agreement? >>> >>> If so, drop me a note off list, please. >>> >>> Thanks, >>> >>> Dan >>> >>> >>> >>> >>> >> > ______________________________________________________________________________ >>> ______ >>> Looking for last minute shopping deals? >>> Find them fast with Yahoo! Search. >>> >> > http://tools.search.yahoo.com/newsearch/category.php?category=shopping >>> >>> _______________________________________ >>> http://www.okiebenz.com >>> For new parts see official list sponsor: >> http://www.buymbparts.com/ >>> For used parts email [EMAIL PROTECTED] >>> >>> To Unsubscribe or change delivery options go to: >>> >> > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com >> >> >> _______________________________________ >> http://www.okiebenz.com >> For new parts see official list sponsor: >> http://www.buymbparts.com/ >> For used parts email [EMAIL PROTECTED] >> >> To Unsubscribe or change delivery options go to: >> > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com >> > > > > ______________________________________________________________________________ > ______ > Never miss a thing. Make Yahoo your home page. > http://www.yahoo.com/r/hs > > _______________________________________ > http://www.okiebenz.com > For new parts see official list sponsor: http://www.buymbparts.com/ > For used parts email [EMAIL PROTECTED] > > To Unsubscribe or change delivery options go to: > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
