However, and there is always a "however" - The owners of the restaurant had first right of refusal and they exercised it and bought the property.Update #2 - while looking at a property that I'm currently under contract my RE agent told me that all the tenants moved out of the property as soon as ownership changed hands... ooof!

However, you're flying blind if you don't do this exercise regularly.

I worked it out so he got $5,000,000 and I got an option on the house for $7,900,000 ( which I still have)I have a great exit strategy worked out when I'm ready to exercise my option.

True conservatives value freedom above all else, but also value the constantly maintained system in which that freedom may be exercised.

It is easy to exercise when you are in the habit of exercising.

So let's say we agree to pay $600 a month with $100 a month credit towards the purchase.You start you're repairs and complete them in 30 days or less and let's say you purchased $1,500 in materials.Now you place the property on the market because you have the option to purchase "You have taken control of the property with your option".Let's say this deal has taken you 90 days from the beginning to the end.You find your buyer let's say at a great deal of $95,000 - $5,000 below market value at this point you would simply exercise your right to the purchase option and do a simultaneous close.Now let's run the numbersYour option purchase was $80,000Your option credit of $5,300 (Repairs, materials cost, labor & monthly credit)Your purchase price after credits $74,700Your buyer purchase price of $95,000Leaving you a gross profit of $20,300You had out of pocket material cost of $1,500You had 3 payments of $600 each with $100 for the credit purchase with an out of pocket of $1,500Carrying cost of $600, (Real estate taxes $300 &$300 Utilities)Advertising cost $300Closing cost $1,300Your net profit $15,100You simply took control of a $100,000 property for $3,900 (payments, materials, utilities, and advertising) and turned a profit of $15,100 in 90 days!

Closing: Closing shall be within ___30_____ days from exercise of the option unless otherwise extended by other terms of this agreement.25.

You can exercise your rights, pay the required amount, and regain ownership, but until you do, its not yours.If you want to be sure of MI law, see a lawyer.

So many tell you hurry get into real estate now, take action, get started no matter what but there should be room to allow for the exercise of wisdom and not taking on more than you can chew. 

And it goes on to say, "However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law."