I've heard some people doing the lease option for a price agreed upon by an appraiser during the time of exercising the lease option.

My example is just another thought exercise, one of many here.

I've been pleasantly surprised that most of them will make arrangements to have a local gig worker of some kind come by and walk their dog once a day for potty break and exercise.

Real estate development is a complicated capital intensive process and there's a lot you need to know and do before you put a property under contract or close on a property you plan to develop.First you need to do a quick feasibility exercise to determine if the project will work financially.

Collect a $10,000 option fee (36 month option) $70,000 option price Monthly rent increase to $800/mo....contribute $30/mo. to purchase price to justify the rent increase.Everything else remains constant $6,500 cash on the front end $10,000 on the back end if they exercise the option...if not, plan B...Thoughts?

But if there is a wholesaler that buys each house, free and clear, and then sells each house, they are will within my understanding of the law and obviously are executing on their contractual obligations.Which brings me back to the first point, even those wholesalers that do execute contracts and stay within the law, they still start and end the exercise with distressed sellers.   

If there is no appraisal contingency or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the purchase price does not entitle Buyer to exercise the cancellation right pursuant to the loan contingency if Buyer is otherwise qualified for the specified loan.

If you don't know the island well, this at least filters out the complexes that are residential or LTR.But with prices basically doubling over the last 5 years, making the numbers work is a bit more challenging now than in 2017 or 2018.I'm happy to run through my numbers with you - but be forewarned, while Maui can be a money printing exercise, you also get pretty good at writing checks you normally wouldn't write on another property (mainland, LTR, etc).

And you can't tell them the insurance won't allow it because yes it they do the insurance allows a trampoline you can't just Swindle them and add things in it is against the law there is no loophole here they already signed the lease you never specified no trampolines that is all your fault on your end and you don't need insurance to have a trampoline understand that right now it's all you can do is learn from your mistake and next time if you don't want somebody renting from you that possibly could put a swing set or trampoline on your property then you need to put it in the lease not tell them anything if you tell them your insurance won't cover it then you are literally crossing a line where they can sue you if you add it into the next lease they can sue you this is something that should have been brought up since day one before they signed the lease to start with and understand if you're renting a house that backyard's not yours while they're renting it that is their backyard and as long as their backyard is picked up and not dirty or filthy and have a whole bunch of stuff all over the place especially if they have kids a trampoline is completely legal especially if it's got a net around it if it doesn't have a net around it then you can say you need to put a net around it that's the most you can do specially because of trampoline with a net around it is completely 100% legal and follows all guidelines unless they're older children like teenagers then they don't need a net around it I'll repeat this one more time legally if you are renting a home and you didn't specify since day one then there is nothing you can do now learn from that mistake and if you don't want nobody ever doing it again then you have to tell him in the lease not tell them to their face it has to be printed in their lease from day one and you can't just change the lease and say no trampolines on their next one nor can you kick them out for a trampoline as long as they're cleaning up all the toys and stuff that's not technically a toy so you understand that it's not a toy it falls under more of exercise machinery and you can't deny people that

Purchase price: $3,000,000 Cash invested: $600,000 Cashflow TBD, we are exercising current tenant lease option to terminate in 90 days after we close April 3.