I have a partner (another carpenter) who at this stage of the game is willing to work at a discounted rate for the first deal in order get the ball rolling.

They will be "subject to" you exercising your option...but will come directly to you which will protect your interest with the homeowner you have the option with.

The 3% usually goes back to them if they exercise the option, right?

I heard 10and above was excellant so I was thinking I was in the ball park.

My very simple am I in the right ball park rental forumula would be price = PV (rate, term, (rent/2)).

Put the ball in the buyers court and see what they can actuall bring to the table.

I believe there are investors out there who create lease options with no expectation the T/B will ever exercise it, and they're ready to evict and keep the option money at the slightest opportunity.

This allowed for the tenant buyer to roll in closing costs, and come with little or even no money to the closing table when exercising their option.I would imagine that some lender out there still has some similar way of treating a lease purchase.

On any given day, we have between $30 Million and $40 Millon dollars worth of property under option contracts with the seller receiving nothing other than the first month's lease or interest payment upon us exercising the option and renting/selling it to a third party tenant/buyer.

My question to you is if i find a seller that is motivated everything is a go and i have the property for lets say 14- 30 days or however long the contract is for and i drop the ball and cant find another buyer... am i obligated to buy the house or does the contract become null and void?....