That is a first exercise for any of my mentoring students.

Mainly I'm doing this as an exercise to see the pros vs. cons of paying off early.

A right not exercised is a right lost!

For really thin equity organize a mortgage assignment between the seller and a new buyerNote that these deals are thinner and you need to exercise caution to minimize risks.

This should be a good exercise for each to really have to determine where they'd actually put their money in this situation.

Originally posted by Eric Michaels:Anyone is free to give up their citizenship and go somewhere else if you think you can no longer be successful in the US because your marginal rate goes up 3%.Yeap…and we are also allowed to exercise free speech, press, etc. and call out people that want the government to take from the productive sector of society and give what they take away to others.

Straight lease to tenant; 3. lease option it to a tenant buyer for 179 days max.So, if you choose option 3, and the tenant is unable to exercise the option by day 179, you need to re-write the entire contract and change a material term - the purchase price for example.

I've been curious about this for a while after reading a few books.When you are lease optioning homes to tenants/buyers, what percentage actually end up exercising the options?

I'm posting this just as much for you as for other investors that come across this subject.I will admit our skin has gotten quite a bit thicker the past few years as we have had a "few" of our tenants try and make things difficult when they decided not to exercise the option to buy.That did come across is some of my answers.What did save us from legal issues is that we run a very clean and ethical business, we work with our tenant's to get them bank financing, and we have a very good attorney and solid contracts.Now that is just with a few bad apples after doing it for 4 years and with the current market conditions, I see Lease Options and Owner financing as a very legitimate, and practical way to help out these buyers who are losing their current homes.In fact, some of the rental companies will not even rent to them if they have those issues on their credit history, so where are they going to go?

I also use my own Equity Share Lease Option contract for 3yrs which converts into a seller financing note when the option is exercised.