Posted by Brad Crouch on June 14, 1999 at 17:26:49:
I don’t know what happened to my reply, but it seems now to be gone. I don’t have the time to retype it, so I’ll be brief.
> What I am suggesting is the TB pays me the option
> consideration. If they move or can not qualify for
> the loan after their lease period expires then I keep
> their option consideration.
So what if they can’t exercise? The option consideration is yours to keep, anyway.
> But what I do tell them is that I will use part if
> not all of their option consideration to make their
> down payment, provided they qualify with the lending
> institution for the loan.
Are you crazy? Don’t tell them that!
> Now with that said, at the closing I bring a check
> for their down payment and I get a check for the
> diffence in what I agreed to pay the seller and
> what I sign the purchaser up for, less any rent
Closings are for picking up checks . . . not writing them.
> So I get the option consideration back at the time of
> closing and I am out the down payment money from the
> time it takes me to get it and close on the deal.
You will end up paying someone elses downpayment, no matter how you figure it. You WANT to give away money?
> What do you think?
I think you need to buy some courses on lease options so you can learn exactly how they work. I am worried that you’ll get killed in this business if you don’t learn what you’re doing.
Plenty of excellent courses are available here (Joe Kaiser, Bill Bronchick, Ron LeGrand, Bill Gatten to name a few).