Posted by Mike on June 16, 2006 at 13:19:56:
With an installment contract, if you are the buyer, you can write a term into the contract that guarantees you do not lose all of the money you paid to the seller in the event you default. The contract can say that you get back some or all of the money you paid in installments. This is pseudo-equity.
With an option to buy, if you choose not to exercise the option, then any rent you paid is gone forever.