If it adds up to something worthwhile, then this exercise should change your mindset, allow you to see the value they bring, and make your mindset more amiable to finding a way to work together.  

Try explaining specific deals to him and show him how you could profit, in theory, as a purely intelectual exercise. 

DJ:I'm a little confused about the "leads" part, but anyway I would put in the contract that you have 60-90 days to find a qualified buyer, if not the opportunity comes back to the original owner -or you just don't exercise the contract.

I've certainly learned a lot more about this interesting and storied city than I knew before and that’s the main point of the exercise.

When they exercise it the resulting agreement of purchase and sale will be between the seller and the tenant buyer.

LOLI always ask about parking, w/d hook ups, amenities (pool, club house, exercise room, tennis courts, etc.).

It is unilateral - you have to sell if exercised, but the Optionee does not have to buy. 

Rest assured, I have money options I can exercise to close escrow that would leave me in an uncomfortable position... but I can do it. 

As far as the building guys saying you need to bring the house up to code, in DC, if you open the walls, you'd better be prepared to update the guts of the house, because if the inspector sees a problem, you bet the $40k a year bureaucrat will exercise what little power they have in life.

More from initial option money, rent, and back end exercise price.Warning - if you are broke, don't do sandwiches.Rules of thumb:Pretty houses 85 - 90% LTV, 15 - 10% Equity; Tools to use are leases, lease options, sub2, wraps, land contracts, etc.Pretty houses 0 % LTV, 100% Equity; Installment SalePretty houses alot of equity but some existing financing: Sub2 and a note, lease purchase, seller gets new 1st mortgage and you give sub2 and a noteIf your exit is lease to own, use a RMLO for your buyer.