Posted by Sean on April 22, 1999 at 20:59:14:
Here’s a simple example: You agree to lease-option a $100,000 resident by paying $1,000 rent a month, 100% credit. For the purchase price you agree to pay for an appraisal on the day you close and that’s the purchase price.
Since under normal circumstances you would be paying PITI we’re assuming that takes away at least 20% of the payment you are making. In other words you are paying $800.00 towards interest and principal and getting a $1000.00 credit.
Sell it to someone else on a contract for deed at 0% interest and you’re still making money.