i realise the logistics of this would be very complicated, BUT! could you, organise a flipping deal in this way. (for those interested i am doing question 45 in assesment task 2) so the below situation is all made up, but i was wonding if theoreticly it is posible before i submit this answer)
could you set up a lease agreement with a call option during a long settlement periode that you have made with the owner of the house. so here is ther senario.
You come to an agreement to make a long settlement because he/she is in no immediate need of the money, make the settlement 18 months making the settlement date 6-5-2014. To achieve the deal you agree to rent the property for a year at $500 a week giving a total of $26,000 in income over the first year of the extended settlement. You agree to give this to the owner if he subtracts a tenant finder and property management fee of $8,000 off then end sales price. He also must agree to sign the contract of sale after the first 12 months; this is to stop you from having to pay stamp duty on the property.
If you were very creative, set up a lease option with the renting tenant of the property so that the tenant may be your eventual vendor that you flip the property to.
my question to the forum is could you set up a lease option with someone who is not in a property you own but instead one that you are already in a extended settlement in????
this could potentially save the hassle of having to find a buyer in the last few months of an extended settlement.
hello coutts
interesting concept that sounds do able , but i think if you didnt find another person to buy the property you would have to pay the stamp because after the 18 month's the property would end up being yours i believe
daniel