@Shannon Elam   I take it you don't have a background in lending, so if you want this to be a successful LO, get them to a RMLO to look at where they stand. also search BP for a post I did on "How to Set the Numbers on a Lease Option"  that will help you a lot. 

Yet one would have to do all the same work you would do on a 250k loan were the LO could make 5k or more per file... 30k loan they maybe make 500 bucks or so.. who is going to do that.

If you want to sell with a lease/option, find the end buyer by advertising it as a L/O property.These middleman investors make money three ways:1) higher option from their T/B than they give you2) Higher rent3) Higher eventual sales price.Also likely they will try to get you to agree to ridiclous terms like they don't have to pay rent if they don't have their end tenant/buyer in place.Do keep in mind that if you have a mortgage the option or a lease longer than three years violates the due on sale clause.

They should know the ins and outs of NJ nuances and customs and if L/O and R/O products even exist. 

Rather our comments here is to perhaps help you seek a different lender and LO because he or she is giving you bad advice.

I understand that there are escrow 1031 QI reps, in this situation I wonder if there are also LO/lenders who have specific 1031 designations.

Lo and behold, the property was in terrible condition.  

The LO at Summit Funding (a competitor of mine btw) is the only lender you've so far spoken with (aside from on this forum) that told you what you "need to hear," not some bullsnizzle about what you "want to hear," that was balanced with an actual deliverable. 

Lo and behold, she has not been able to make mortgage payments since october 2014.This scenario raises many questions for me1) When a property is mortgaged and the mortgagor dies but the real property  is bequeathed to a devisee; what happens to the due on sale clause found in most mortgages?

and I like to think I knew this was going to happen,  but lo and behold the Graton Indians bought the 120 acres right across the street and built the largest Indian Gambling facility in northern CA. and my property got swept up into the city limits and rezone from AG to mixed use resi and commercial.. value today once permitted conservatively 2 to 3 million.. did it give me cash flow No not one dime.. could it have gone no were sure could of.. did I get lucky I do believe I did... but at the end of the day it was on the border of the city limits and there was a Homedepot anchored shopping center and a freeway interchange one block over.. so I thought Some day.. and in another 5 years I think I will cash in.... and or I will build it out.But by the time that happens I will have owned it 25 years or so...