lease option strategy

[Ismael Mathurin]

Hello bp fam!

 I have been looking into lease option strategy. I am wondering,  How would you go about completing a term, if the property loses value while its under contract? 

Example; If I place a house under contract for $200k, term 1-2 years,  current value is $280k. But by the time it is sold, property value goes down to $190k. 

How would that affect the deal?

How would you deal with a situation like this? 

[Joe Villeneuve]

That depends on the terms of the option contract.  However, if you are buying a property that was worth $280 and drops almost 1/3 in value over a 2 year period, I just wouldn't exercise my option to buy.