A lease option is (basically) a lease with a really large down-payment, during which time the lessee may elect to buy the property for a predetermined amount of money.  

In case they had any predetermined opinions on "flippers". 

(My idea for the partnership would depend on two scenarios - we have not sat down yet and came to a solid conclusion at this juncture, however option one would be he stays in the long haul - I help finance the deal, take care of that side, put in my sweat equity/management where I can, then take care of lease out, property mgmt - we'd split equity 50/50 - second option would be for his exit at a pre-determined point in time.... cash out refi - and he gets 50% of the equity - walks away or keeps a percentage of equity leave some cash in the deal etc)Am I out on cloud 9 as far as getting build cost down to $50/sq ft or so?  

Once the purchase of the home is closed, renovation funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors.The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done until the house has been purchased.HUD's 203(k) program can help you overcome this obstacle by enabling you to borrow funds for the purchase or refinance of a property plus the cost of making the repairs and improvements in one mortgage.

I was thinking of accepting the offer with stipulations that if the home doesn't sell by X that the builder pays me out at a pre determined amount and takes full ownership thus giving up my % of profit (but I would still collect my wholesale fee).  

Why not treat it like any other auction: Keep bidding, from whatever their starting price is, but stop IMMEDIATELY it goes over your predetermined Maximum Offer?

Originally posted by @Janek Koza:Hello,Does any have a Rent to Own agreement for Ontario Canada, that I can have a copy ofThank youJanekJanek:While I am sure there are single "Rent-to-Own" agreements out there, you probably should avoid them and use a separate lease and purchase option agreements.The lease is your standard lease you use for any tenant.The purchase option is an option agreement which provides the {potential} buyer with the option (but not the obligation) to purchase the property at a point in the future at a predetermined price.  

If I have predetermined that I am replacing the carpet when a tenant moves (usually only because it is old and worn) then I am not going to charge them for a carpet cleaning or damages.

Does it require regular monthly payments or is it all paid back in a lump sum at the end of some pre-determined term? 

After all, they are purchasing the option (the right to purchase the property at a predetermined value) and not making a down payment on the property.