Realtor investing in Lease Options... how does it work?

Real Estate Agent with RE/MAX Elite

Hello everybody,

I started learning about lease option investing and I'm still not clear how the commission is paid and disclosures that are required.

If I'm interested in a 3 year lease option, does the listing brokerage get paid at the end of the option (assuming the sale closes) or partially in the beginning?

How and when does my brokerage get paid?

If I'm interested in working out a "sandwich" deal with the seller for a property that's listed on MLS by another agent, how would this deal be structured?

If you could provide, in details, how a deal is usually structured when 2 brokerages are involved, what the process is and what disclosures are required, that would be great.

Please provide the details.

Thanks in advance.

Posted by

Russell Volk, REALTORĀ®/Partner
Cell: 267-566-0999

Scope Real Estate
221 W. Street Rd.
Feasterville, PA 19053
Office: 215-364-6501
Fax: 215-364-6502

Comments (1)

Jack Climer
Jack Climer Realty, LLC - Springfield, MO

First, you get paid on the percent of the lease agreement...on signing of the lease. Everything else that your asking will have to be worked out with your broker...

Aug 03, 2008 05:02 AM