Lease Option Terms

[Austin Gabriel]

Hi all, I am structuring a lease option offer on a property and it is my first one. I know there is usually option $ involved and obviously the rent and option to buy time is up for negotiation. Is there any other terms that I could use to make my side of the offer seem more favorable or give the seller more piece of mind on the deal?

[Marco Bario]

@Josef Hardi -

A "lease option" is actually two separate deals/documents that are often created in tandem.

1 - The Lease functions like most any other lease. It grants use of the property so long as the lease is in effect. In this instance, a portion of the lease payments may also be credited toward purchasing the property. 

2 - The Option grants the right but not the obligation to purchase the property. An Option Agreement may define the strike price (purchase price) specifically, or it may define the method by which the strike price would be calculated if exercised. It will also define a term after which time the option would expire.

@Austin Gabriel - Bill Cook (https://billandkimcook.com/the...) has an options course coming up. Anything he or Peter Fortunato teaches regarding options or creative financing, in general, is gold.