How will a tenant-buyer be able to afford an option consideration/fee of 3-5% of the selling price if they are not financially well off enough to qualify for a mortgage?

Thank you for being considerate to your renters!

The most important one at this time is to draw a line that will hold by getting it sorted.

In your case, the IRS makes you pay estimated tax on your profit distributions, particularly if your S Corporation is fairly profitable and you're taking out healthy profit draws. f you can show the IRS that you've paid most or all of your previous year's taxes within that same tax year, you will stand a very good chance of avoiding estimated tax payments entirely.

If you do it right you will never close so you do not need to draw down the money.

Even if there is not the idea that you would need to refinance in the short term will up the financing costs as you will need enough for the present property plus the new property (with draws, etc).In the future it would work better if you can keep the lot free and clear.

If you are not "in the business" but arrange any consumer or residential loan between a lender (even if that party is not in the lending business) for any borrower, for consideration, you are brokering a loan and will need a license.

Very expensive (over $20K) jobs are an exception, as are long term (2 or more weeks), in which case have YOUR attorney set up a draw account and him/her disburse the funds.2.

The earnest money is the "consideration" which accompanies the "offer" which if it becomes a contract and completes delivery is required have consideration to make it a binding contract.

I usually pay based on percentage of completion with weekly draws.