Posted by Ed Garcia on April 01, 2006 at 09:52:12:
Esligh,
I would go with Bronchick?s.
My reasoning is obvious, Bronchick is a Real Estate Attorney and the involved forms are important and I?m sure more universal, meaning from state to state. My guess, Bronchick ? has more legal savvy and Joe?s a better practitioner.
Dutch gave you some sound advice and I?d like to touch on when he said, (Different thoughts on giving rent credits. Some say ok, some say it gives the buyer equitable interest in the property. Personally, I believe you are just at the mercy of whichever judge you get that day. I give rent credits, but some of my friends just flat won’t do it.)
I agree with Dutch when he say?s ?of whichever judge you get that day?, but chances are in your favor that it will go unchallenged, most tenants just move on. Therefore I go with rent credits and suggest that you make sure to get over market rents.
Example: Market rents $500; you get $650 with $150 credit going towards purchase. Most lenders will not recognize rent credits if they come out of market rents, they feel the buyer and seller are in collusion to make a deal. If the tenant doesn?t exercise their option, you keep the overage as a penalty for not exercising the option.
When Dutch says suggest writing your Lease/Option 1-3 years max. 3 years is the legal max you can go, this should be addressed in Bronchick?s course.
Ed Garcia