Also, does anyone give any of the option money back if the tenant doesn't exercise the option?

Thanks Mike, atarget, and Jim for all of your tips.I agree it's not a good deal, but this was a great exercise for me to do the analysis.Is there a Cincinnati REIA meeting tomorrow?

I would have the LLC exercise the option and then sell the LLC to the developer.

Lease/options can force you into a foreclosure situation even though you are the landlord.That said a lease/option can still be a good idea.If you use a rent credit that reduces the rent to below market levels the lender could have issues later when the person goes to exercise their option.

Completely legal as no law is being broken.The DOS clause in the loan contact can be exercised by the lender.

If they exercise the option then they make a built in profit.

Do the options typically get exercised?

Aside from possible predatory habits (check with your attorney's on this one guys if you are charging an up front fee), its just a pointless exercise to charge.

The more credit you have that is exercised wisely will allow you to raise your credit score.

Wouldn't more appropriate goals look like this:I want to save $200 this month for a down payment on a home.I want to be the vice president of our company in the next 5 years.I want to exercise at least 60 minutes before work everyday.I want to show up to work on time driving a Mercedes 500 SL.I want to retire by 55 with at least $1,000,000 in the bank.I like to look at goals as the picture on a puzzle box.