Lease options & Sandwich Lease Options

[Emblaze Pete]

Hi Guys,

First time poster here. Brilliant site and brilliant people. Everyone appears so knowledgeable and helpful. I feel very little being in here but hopefully over time I can add some value……. By way of introduction … I am just begining my journey albeit a bit later in life (43) compared too many of you. I have for a while convinced by self that I have missed the boat on PI and financial independence but now think I have conditioned my mind not to accept the psychobabble any longer and to just take the plunge. The day job and corporate world is destroying my soul and its time for some action and to find a way out.

I am currently going through crash course on the finer intricacies of PI. Reading lots of books, magazines websites etc to help with the establishment and formulation of my goals and strategies. Over the coming month I hope to be in a position to have a fully defined my set of goal’s and also a workable strategy.

In the mean time I wonder if you are able to assist. I am looking for some excel PI financial calculation templates for lease options & sandwich lease options. There doesn’t appear to be anything relevant on the web. Also I don’t suppose anyone is able to provide the contracts for these types of transactions. I am assuming it's two contracts. A standard landlord /tenant lease contract and then a separate contract for the option component.

Thanks in advance

Kind regards

Pete

[Dean@Massiveaction]

Hi Pete, The documentation for both is critical. Any contracts more than a few months old are no longer legal anyway. Global Business ideas is the only place to get the material as part of their course without spending $$ on soicitors yourself. As for the spreadsheet it is basic yield number crunching. Sugest you do the course then you can do the numbers yourself in about 10 seconds. I've done both their courses and consider them the best money I've ever spent

[Emblaze Pete]

Thanks for the response Dean. very much apreciated.I do intend to do the course that Doreen runs. I understand that Doreen is the queen of the sandwich option. Unfortunately I am in the UK for the next few months, so will not be able to consider this until May at the earliest; hence I am just gathering as much info as I can.

Any contracts more than a few months old are no longer legal anyway

Why would this be? I am only looking for contract drafts or templates so as to understand the contractual variables for these structures.
Could I just use the one contract i.e. the lease contract, with some additional clauses for the option component or is there another separate contract for the option.

I apologies in advance if I am being totally dumb but do appreciate your help

Regards

Peter

[cube]

Hi Pete,

You sound just like me - bound by the shackles of the 9-5 and searching for a way out!

Consumer credit law changes last June meant that all credit contracts have to be reviewed, and that anything that complied with the old law probably doesn't comply with the new - hence the need for up to date contracts.

cube

[Dean@Massiveaction]

Hi Pete, as cube says the law changes affects the documents. In terms of your research, simplistically what you have is a fixed term lease document with an option to purchase at a specified price or at valuation. That sits UNDER a residential tenancy agreement. That's about it really but the wording and clauses are critical to ensure one complies with the raft of nonsense legislation we enjoy.

[toby]

Hi Emblaze Pete,
It may be possible for you to purchase a home study course with all the documentation and a live recording of a workshop.
The price would be the same as attending a live event.
I have personally used much of the material and can say it's excellent.
email: [email protected] and say that Toby said you should send you an audio set and manual (if that's what you want).
Good luck.

[Emblaze Pete]

Hi Cube, yeah bounded and gagged alright, but at least for the first time I can feel the shackles slowly coming off, after years of working for others. It’s now or never! Thanks for the info on the consumer credit law changes. I didn’t realise that. Have been out of the country for to long I think.

Thanks again Dean. If I understand you correctly there is one legal document i.e. the ‘Fixed term lease document’ which contains both the wording and clauses for the lease and the option. This document is regulated by the ‘residential tenancy Agreement.
I keep reading that it is best to have separate legal documents for the lease and the option and for the lease to NOT have words pertaining to the option agreement. I am not sure why but perhaps this is relevant or pertinent to American law.

That's about it really but the wording and clauses are critical to ensure one complies with the raft of nonsense legislation we enjoy.

I guess the government is continuing in its leftist, meddling, interfering ways.

It may be possible for you to purchase a home study course with all the documentation and a live recording of a workshop

Thanks Toby I may look into this although apart of me feels I should be there in person. I probably would gain a lot more.

Regards

Pete

[TWT]

Hey all I have done 15-20 or so Lease option and combination (Sandwich) LO's In NSW Australia... if you think the legisslation is tough in NZ you should try it here!!!
The key to getting it right is to completely separating the option from the lease agreement. You actually need three documents:
1. Option to purchase agreement
2. Residential agreement (Fixed Term)
3. Valid Sales and purchase agreement (this is so you actually see the real macoy property transaction documentation that youa re getting hte option to purchase..... once you actually excercise your right to purhcase... the seller must complete the contract (either by renewing it and signing it off, or completing the one that you have accompanied with your option.)

It is very important not to refer to the option arrangement in your rental agreement and vice versa.... This elimiated any issues later if hte whole thing goes pear shaped and hte option holder wishes to sue you for equitable title (basically trying to get back all the money they have given you).
If I could find a bloody solicitor that knows how option work in NZ ... I would be home and hose!
Hope this give an idea or two on howi t works! - I spent thousands on getting the knowledge from Lease option courses and ther is another good US resource you could investigate!(nothing to do with me at all)
www.l2p.com

[Dean@Massiveaction]

Hi TWT. There are good solicitors in Auckland and Wgtn who understand LO and SLO's. PLenty of courses available here too now. Sounds like your legislation and paperwork significantly different in some ways.

[TWT]

The option is fine it just needs a little tweaking.
Do you havea solicitor in WEllington or Auckland that I can contact to get this accross the line?
Cheers