How would you prevent the seller from taking out a HELOC or other lein during your 3 year option period that would cloud title and prevent a future sale? Do you, when giving your option premium/ down payment, cloud the title to protect your interest?
This will be stated in the contract, so the seller cannot take out a HELOC that would exceed the contract price you have with them. Clouding the title with an affidavit is always a smart thing to do. We have the contract and affidavit in REIPro Software. Hope this helps and appreciate the comment.
Chris would you do this if they don’t agree to a sub to ? Also it seems like a lot to manage do you have someone like a property manager that will manage everything like payments, complaints repairs?
I generally don't seller finance properties with little to no equity, and that is the reason I would do a lease option. You can have management companies manage these for you, but it's not as difficult as it may seem. Hope this helps!
If the property is listed, you should go through the agent, but will need to explain your offer. A great way to explain this is that you work with buyers looking for Lease Option opportunities. Would the seller consider this option? Especially if the property doesn’t sell.
