What this exercise might find is:- Contractors willing to communicate and go through formalities of estimating- How hungry the contractor is for work- Which contractors answer your exercise most professionally - Which contractors go above & beyond with thier answers and their own past example work/portfolio- Which contractors accurately estimate material and/or laborOf course if they don't or won't reply, it could also mean they are too good and busy to jump through your hoops -- so they could be great contractors as well. 

The option fee usually becomes part of your down payment, but is lost if you do not exercise the option.

Pretty simple exercise to see what comp rent rates are for the area, that will tell you if the numbers are way out of line or not.

Of the 11 properties we have 7 that are lease optioned, another which we are signing on Monday, and the other 3 just came up on the market within the last month or so.If all goes to plan and they all exercise their option in 5 years, my partner and I stand to make 282,522.77 each on these properties over the next five years (this includes the profit when we sell the properties and the monthly cash flow).  

Same document sheds light on your other thread in re:"In dealing with the buyer, a seller's agent should (a) exercise reasonable skill and care in performance of the agent's duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of the property, except as otherwise provided by law."

Unfortunately - for lack of historical perspective - since LLCs shave been around, interest rates have been going down; if this situation changes, lenders may start exercising the wording in the contracts.

Otherwise, I need to exercise what is in my right to protect my business."

Most banks will not exercise this right if the payments are made current and continue to be paid on time.

However after some gentle persistence I was able to follow up with a phone call and scheduled a breakfast w/ him last Friday.

I will run through the exercise when I get back to a computer so I can give it ALL of my attention.