L/O Rent Credits-Don't They Go To The... - Posted by SA-in wa

Posted by SA on September 10, 2003 at 20:02:30:

Jim-

Thank you for your respnce. I currently have the l/o and am going to exercise my option to buy. I will be holding this property as an investment property. I was thinking of writing up an “Offer to Purchase” that shows the rent credit as a down payment and already paid to the seller. Any problem with this? Or does one usually just use the existing l/o contract to purchase?

Thank again for you responce.

SA

L/O Rent Credits-Don’t They Go To The… - Posted by SA-in wa

Posted by SA-in wa on September 10, 2003 at 12:06:27:

…down payment or to just lower the purchase price?

Thanks
SA

Re: L/O Rent Credits-Don’t They Go To The… - Posted by Jim FL

Posted by Jim FL on September 10, 2003 at 12:17:01:

SA,
In my agreements, rent credits, when I give them(VERY RARE) are credited toward the purchase price.
Now, how they are handled when it comes time for the T/B’er to get a loan is totally up to the lender, same thing with option money.
Some will just lower the purchase price, and require more cash to close, while others credit this toward the down stroke.

HTH,
Jim FL