Posted by Rob FL on March 08, 1999 at 17:46:31:
In that case it would be.
Another example is rent-to-own a/k/a lease option. I lease option a property from a motivated seller. I put $500 down and rent for $500 per month and a purchase price of $50,000. I find a buyer who will lease option from me, the middleman, for $3000 down and $600 a month and a purchase price of $55,000. My agreement with the seller is that I don’t pay him anything until I find a sub-tenant.
Ultimately I get $2500 up front at closing, $100 monthly cash flow, and a $5000 spread on the purchase price.