Question re: structure of note vs lease/purchase - Posted by Lynn
Posted by Lynn on September 14, 2003 at 11:38:10:
I’m back with a simple question. When you sell on a note, downpayment is due at closing and then the first note payment is due 30 days later or on a chosen date just like when I get loan at the bank, correct? Is this how most of you are doing the notes?
When you sell using Ernest’s “lease” and “option to purchase” agreements. Option Money is due at the signing of the lease. Is the first lease payment due at that time (or when the tenant/buyer takes possession) just like in a rental situation? Since it’s lease, do they pay ahead like rent, or in arears like a loan? How do most of you structure these?
If in the lease/option situation, the lease payment is made up front like a rental–and then the person exercises the option later, and you carry that amount on a note, does the monthly payment then become due at the end of the month. (The tenant/buyer gets to basically skip a payment during the transition??) I’m just wanting to make sure I fully understand the proper procedures and treat someone properly and fairly.