The rest of the exercise is to offer what you can pay based upon the margin/profit you'll work for. 

On the other hand, if your buyers are serious about buying a home and want to have that "pride of ownership", you may have a winner.If your sellers are depending on the tenant exercising their option, you may want to educate them.

I am closing on a multi next week and I want to exercise the insurance market on pricing for insurance.

So that is a very good catch.I thought it was more of an exercise in explaining the value of hard money and didn't even think of asking her about her experience.Bottom line though is that I started using hard money after my first deal.

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.