Once the home is build, exercise the full potential of the owned income property and apply that to our mortgage.

Here's a great opportunity to exercise a skill that you will commonly need and use when "doing real estate investing!"

He wants to set it up that i take some now, and some of the option deposit when the buyer exercises the option.

Jon Klaus you proved my point that exercising a little leadership is clearly in an investor's best financial interest and it thrills the neighbors to boot.

Is there a formal "contract" or letter to use to cancel a contract if for some reason we have to exercise the contingency plan?

With the lease-option, all funds that are paid are forfeited, but if the buyer does exercise the option, they just take it on as equity correct?

The option amount is for balance owed on the sellers current mortgage loan at the time option is exercised.

Looking at the calendar, I'm guessing there won't really be time to jump on another home this year (trying to rent something between November and January really stinks), but maybe I will repeat the exercise in the spring.In general, the whole process will look very much like a fix-n-flip, only I will be selling it to myself at the end.I had a meeting with my mortgage broker yesterday.

Notice To Exercise Purchase Option And, there is a letter to send to the seller when you want to exercise your purchase option.I hope that gives you ideas!

Your "stick" is that if they do not, you will exercise your right to come after them, as prescribed in OH law, for (among other things) the total difference between the CFD payment and fair market rent during the term of the CFD (CFD payments are usually $100-200/mth below rent).