Posted by JohnBoy on January 17, 2001 at 18:44:07:
How are you screwed? They paid you a deposit (assuming non-refundable option consideration?) which they will not get back when they move out if they don’t exercise their option. 60 days before their lease is up, you start marketing the property again for another tenant/buyer and start over again! Based on your post I assume this is a property you own that you will be moving out of and into another property?
When ever you L/O a property, the tenant/buyer does NOT have to buy the property. They only have an OPTION to buy which will be their choice as to whether they exercise the option or not.
If they don’t exercise the option, that’s WONDERFUL!!!
Now YOU get to make a lot MORE MONEY!!! That’s what you WANT! Did you know that 65% of the people that L/O a property end up NOT buying the property? But that’s GREAT for YOU! Every time a tenant/buyer doesn’t exercise their option, that just means MORE PROFITS FOR YOU!
Meanwhile, you got money up front from them. They move in and pay the rent which makes you cash flow every month (assuming you did this right) and when they leave you get to start all over again with a new tenant/buyer! That means MORE OPTION MONEY, HIGHER RENT, and a HIGHER PURCHASE PRICE! YOU WIN BIG TIME!
So how do you figure you are screwed???