Use with a Work For Equity exit strategy.
Revised 05/07/2014
Real Property Possession and Lease Agreement Sweat Equity Program
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Real Property Possession and Lease Agreement Sweat Equity Program
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a complete form with instructions good to have in a folder ready to go
Thanks! Ron Just what I needed.
Another tool in our toolbox. I could of done several of these work for equity deals already….just didn’t think about it. Thanks Ron.
A great tool. Plants many seeds!
Thanks Ron
This agreement is pure gold.
Work for Equity is Ron’s favorite exit strategy when selling a house.
Your tenant buyers fix up the house so you don’t have to.
Better yet, they pay you for that privilege.
Like this form a lot
This is the best part of the contract.
5. CONDITION AND IMPROVEMENTS. Lessee accepts premises in its present “AS IS” condition and acknowledges a list of any existing damages or items needing repair, replacement, installation and/or maintenance to the premises was received previously, and Lessee was given the right to inspect the premises in its “AS IS” condition, l
If your house depreciate in value (Lose equity), basically nothing happens if you are planning to remain in the house for an indefinite period of time
If you decide to sell the house you would not be able to sell it if the depreciation cause your mortgage to be more than the value of the house
If you insisted on selling the property you would have to make up the difference between the sales price and the remaining mortgage owed.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
good point it”s a good idea to have ready to go fills with all necessary doc and a checklist
I’m picking up a new lease option property that’s going to need some work done on it.
This is what I will be using.
My real estate attorney will be using Ron’s documents with a couple of additional clauses.
Ron has a different one for buying than he/we use for seling, it is similar, but different.
You want to make sure that your tenant buyer makes any repairs that the house needs to make it habitable.
Do NOT let your tenant buyer in the house before they do the necessary repairs.
You want tenant/buyers who have the skills to do the work or have friends who have the skills.
If they don’t have the skills they can learn them at the Home Depot’s, Lowe trainings.
Again, the work must be done before they can move in to the house.
Why rehab? Sell “AS IS” for a small discount and collect an option fee and monthly rent while the buyer does the work.
Has anyone had any difficulty using this agreement in New York State?
thanks
The challenge is that the work should be done before they move in and with holding cost you need to see if that makes sense or fix it up and then get a tenant/buyer.
awesome stuff definitely going to use this.