Posted by LeonNC on February 09, 2001 at 21:10:28:
I think it depends on what you want from the deal. If it’s a large back-end of the deal that you’re looking for then only do the ones you can get at a discount and mark it up.
I’m aware of some people who try to build a nice back-end into the deal but are more interested in the cashflow and what they can get up front. If the house has good cashflow there’s probably some equity.
I’ve had opportunities to sandwich lease houses with large payments but passed. The control without ownership is nice and I take that into consideration but I just don’t like being on the hook for large payments. Maybe a few but I’m not looking to make a habit of it. The risk has to be worth the reward.
You can always make your tenant/buyers purchase price a set price or what it will appraise for which ever is higher IF AND WHEN they excercise the option to purchase.