Hi Everyone,
Am kind of in a rush to buy and close a lease-Option.
Have a buyer who is currently bankrupt until August 2007, but wanting to own a property. i.e. lease-option into a wrap, or maybe even just a lease-option into a straight sell. (With the buyer aquiring funds from a commercial lender).
He currently has a $3000 available option fee(money).
For a hundred dollars, would someone please guide me through a lease-option into either a wrap or a on-sell.Thanks very much for any help
Nathan Danker
Don’t know about the legalities of it all, but from a moral point of view, surely his obligation lays with the creditors whose loans he has defaulted on?
Nathan, what state are you in?
If NSW, I suggest you sit down with a Lawyer such as Tony Cordato.
Bankrupts need a place to live too, but be careful. Bankrupts are bankrupt for a reason. Also, watch out on the money side, I beleive all of their income earned above a certain point goes to the Trustee for creditors.
have a look at http://www.itsa.gov.au
Terryw
Discover Home Loans
Parramatta
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Step one – get a copy of his current Baycorp Credit File. It will cost him $23.00 OR about 3 weeks for nothing. Review it. Find out how much money he went Bankrupt for. Assess your Risk Accordingly.
Step Two – If you decide the risk is worth it consult your Solicitor and have him draw up the Contract for the lease option. In this he should receive a “rent credit” if he follows through with the purchase. If he walks away at the end of the time he gets nothing it is a simple lease and you retain his option money as covering your costs.
Step three – Ensure your contracts contain the necessary parts about who is responsible for maintenance and rates insurance etc;
Step four have him seek Legal advice. Do no allow him into the house or contract without a Lawyers Certificate Advising him it is a bad idea!
Step Five – Have him move in and start taking his money.
Step Six – Give him the title in exchange for settlement after he obtains Funding through a Commercial Lender.
Simple!
It’s really a bit more complex thaqn that but thats the basic overview. I left out the part about you having to get funding for the home and then onsell it at a profit. I figured that stood to reason…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Thanks for all of your responses guys
The gentleman became bankrupt due to a marriage break up.
He is set to make roughly $60,000+ this fiscal year, and seeing as he is the manager for the company where he is working, they subsidise his rent payments. He has said that his company is willing to lease the property back from him (i.e. a sub-lease/sub-assign clause will be included in the contract).
He seems pretty certain about this, but I’ll get a letter from the employer anyway regarding this matter.In regards to the Lease contract, the local WA State Law Publisher sells blank lease documents which have (or hopefully seem to have the main required clauses under the Tenancies Act with room for additional clauses. Now as long as I get a Lawyer to quickly check over the contract, then this method should be alright as well, yeah?
Thanks guys for your help, I’ll talk to you later
Regards,
Nathan
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