Here in Texas, we deal with the dreaded option inspection period that 99% of all buyers exercise.

One investor said that maybe the seller could set up a loong term l/o and when the t/b's are ready to exercise their option it would be for the loan amount.What do you think?

My current high-level strategy for starting off sub-division is as follows: 1.Find properties with sub-division potential or re-zoning potential. 2.If re-zoning is required assess the precedence for this through historic approvals. 3.Complete due diligence 4.Enter ‘Rent to Buy’ agreement with vendor with clauses inserted to allow me to sub-lease and control over putting through development applications. 5.Secure property on rent to buy and sub-lease6.Lodge and gain approval for development application 7.Source JV partner leveraging from the development application approval. 8.Exercise rent to buy option with financing secured with JV partner9.Develop property and onsell.

After several years, hopefully you will have enough equity and money to refinance and put the loan under your name if the tenant doesn't exercise their option.I'd say option money is $3k-$3.5k.

I'm very excited about the prospect of REI and look forward to exercising my noggin.David Beard - Strapping the baby to me and hitting the job site, RE office or parts store is definitely the plan.

If you do not want to exercise your option, why are you looking to pay money to get out of it?

Simply put all your terms and conditions in the purchase option portion of the lease agreement, give a 100 percent rent credit and set the exercise date 91 days into the future.

Creating an LLC is a quick exercise.

After that specified time is up then if I don't find a buyer then I don't have to exercise that option to buy.What I don't want to do is get a conventional loan ( although I have been approved) or owner finance AND hold it for 15 or 20 years while collecting rentDoes that make sense

When it was time to exercise the option i actually sold 2 of them back to him and went to the same bank that holds all the notes to take over the loan on the last one, my Principal Residence.