Wednesday, March 18, 2015

I have a tenant that is on a lease and he would like to make a lease with and option to buy. What is the best way to go about that.Thank you...

Question

I have a tenant that is on a lease and he would like to make a lease with and option to buy. What is the best way to go about that.

Thank you

Louis



Answer

The best way is not to do it. There is essentially no way to structure a deal like that, that is a better deal for the landlord than just continuing to rent, or selling and reinvesting the money, that is also a fair and good deal for the tenant. As a result, either the landlord and tenant cobble together a deal on their own and wind up in litigation when it falls apart because they didn't know what they were doing, or it is carefully prepared by a knowledgeable real estate attorney which turns out to be a waste of money when the tenant cannot perform, or winds up being a waste of money for the landlord when he could have just kept renting or just sold the property.



No comments:

Post a Comment