Include when the option will be exercised, usually prior to construction, and what terms must be met for the option to trigger the sale.

(You will have to exercise your option to realize the spread).  

Most borrowers, when exercising a lease-option on a commercial property will use an SBA loan.

This is a very difficult task and if anyone else has been through an exercise like this before, I would LOVE to speak with you.

However, we've never exercised this clause.

If you have it in your lease and follow that procedure according to your state law then you can exercise that right.

In this case, you would continue to collect rent, but they would have a set option price that they could exercise at some future point.  

Get a 3 year lease with the optiond. exercise your option based on the low NOIe. funding can be a JV, Limited Partnership or Bank Loanf. you job is to turn around the investment, increase rents, make it more efficient.See http://www.biggerpockets.com/blogs/3/blog_posts/39...

I would figure out what path will generate the largest profit (or smallest loss) given an amount of effort you're comfortable with -- then do that.Of course, this is something that you should have figured out BEFORE you placed your bid...what makes you think the deals are profitable if you haven't gone through the exercise of analyzing them?

It is not a good choice for a passive investor, but a wonderful investment for someone who's willing to exercise a little leadership.