At closing with your new buyer, The IRA exercises the option simultaneously, thereby giving them 20% of the equity.

Your company gets their Option payment which is applied to the eventual purchase, but is forfeited is they don't exercise the option.

They lease and manage and if in a year or so they exercise the option then you can still at that point do a 1031.

Account Closed that comparing them seems like an exercise in futility.

i think most of our judges , save a couple, would throw that out unless the tenant also wanted to exercise the clause to end the lease.

I don't want to tie up a property by a renter that won't be exercising the option and usually an option sets a price a seller is obliged to sell for, so if there is appreciation, the renter benefits.You need to do more research as the range of comps is too broad.

A proof of funds is as well given as assurance of buying the property after the lease period is up and if the option did not get exercised (to buy), is this something mandatory and how should be the strategy be like for a starter like me?

On all my other deals I have never used a bird dog, so I do not know what's appropriate. no idea what is appropriate for bird dog but for a buy and hold or any transaction really 1 to 2k.. and then take that and pay them monthly over 36 months.. and then tell them to go find 20 more.. you have the opportunity here on BP to listen to those with a lot of experience at this and I cant stress enough that minor partners are trouble.. it never works out.. and they will think it was all them and you could have never done it without them.. pay them for what they did but DO NOT put them on title or a member of your LLC.. this mistake cost me a few hundred grand over the last 30 years.. even I can learn from my booboos  but I did not have BP to ask should I have minor partners sounded good at the time.. but then they have an interest and they can then exercise that interest and usually blackmail you into more than you really owe them.. 

Usually in these cases, there is an option to buy, but in cases of the old tired landlord, it is only exercised after his death.

Capital improvements should be an expense of the land owner as part of a lease option, otherwise you risk throwing that money away if you do not exercise the option.If the Seller's big concern is taxes go with a straight Seller Financing arrangement as it will provide the same outcome.