I've done many options days and months after the lease, one reason is often allowing folks to save more money.IMO, if I don't take a security deposit and do what is customary in making a lease, the two contracts merge in concept leaning toward a sale transaction.

The key concept here is you do not ensure a file is "good" post settlement, you do that pre-settlement, during due diligence.  

I also contacted several escrow companies in the area and they will also do note escrows, although it was more expensive and some seemed unfamiliar with the concept but not all.  

I have been investing in real estate for about 2 years now but actually started with mobile real estate (iphone apps) it is the same kind of concept.

I was approached about this concept from a classmate of mine wo was formerly incarcerated and have given it some serious consideration especially since its fallen within my investing principles/core convictions.

So I just purchased my first property and want to brush up on a concept. 

Thanks Ken,The initial concept was to extract the value of the land via liquidation, and maintain the existing house as a consolation prize.  

I think you may be discussing a tax concept on when a property that you've used as your residence becomes a rental property (I think that's 2 years, but I'd check with a CPA on that) and alternatively the underwriting guidelines where you say that they remove it from your debt calculation after 2 years.  

All our usual suspects for legal work are not yet versed in this concept.

I've never seen those before, though seems like a great concept.