Depending on the facts and circumstances of the agreement, it could either be treated either1) the sale occurs as of the original agreement date, and then your taxable gain is generally spread out over the life of the principal payments as an installment sale (although I should mention any depreciation you've taken on your property could affect this), or2) the sale does not occur until the lease option is exercised, and gain reported at that time.

Albert, I see it as particularly important in the off chance the lender chooses to exercise the due on sale clause.

Key takeaways include:Thorough Due Diligence: Ensuring all aspects of the sponsor's background, financial health, and track record are meticulously examined.Consistent Criteria: Applying consistent criteria across different sponsors to facilitate objective comparisons and evaluations.Continuous Monitoring: Regularly monitoring the sponsor's performance and financial stability throughout the project lifecycle.ConclusionSponsor underwriting is an essential component of successful real estate and investment management.

In that case, I would shop it around to see if any other regular carriers will write the coverage.  

Find one you can go to regularly for a few months.

I am very impressed with your knowledge and will definitely going with your firm for the simpler 401k trust plan, and I will get rid of the LLC.Just for the sake of exercise, could anyone please still let me know if an IRA makes a private equity investment into an LLC and becomes the 100% owner of the LLC, and the LLC later receives tax forms against its EIN, will the owner of the IRA just disregard those tax forms?

I have been happy with them as all of the forms are State specific and they update them regularly with any law changes that are specific to that state?   

I understand how it all works but when you go to refinance (regular refi no cash out) will the underwriter see that the current mortgage on the property is from an LLC that is owned by the borrower?

I have been on with them twice on the regular podcast, and now they are talking about me behind my back?

If those houses were on the open market why didn't regular buyers buy them, too much work?