If Option is not exercised before 3 years, I will take out a loan for the remaining balance or assign the contract to another investorCurrent balance on loan is 54,000.

No matter what, always give yourself time for exercise, and family!

The seller however is required to sell to me at that price should I exercise my option.

I would steer clear of that if your intent is to maintain ownership until the option is exercised.

The lender could exercise their "due on sale" clause if the seller deeded you the property, but they have no reason to if the note is being paid on time.

This thread is an exercise having to do with goals.

We should be able to do this fairly easily this year if we stick to our plan.I agree with those that said keeping track of things is a useful exercise.

Germain Depository Institutions Act of 1982, (U.S.C.) 1701j-3(d)(8),“With respect to a REAL PROPERTY LOAN secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon a transfer into an inter vivos trust in which the borrower is and remains A beneficiary and which does not relate to a transfer of rights of occupancy in the propertyâ€.

When options are exercised, the employee pay the taxes, and the company receives a tax benefit (essentially, the employees are paying the taxes in lieu of the company, but are doing so on essentially free gains, so they don't seem to mind).Microsoft used to make more money in tax rebates doing this than they made selling products, and which would essentially offset all of their taxable profit.

You are going to pay a bit of a premium for that loan.I also think you need somewhat long-term money because a lease/option tenant/buyer doesn't always exercise their option.