Also, search my comments here on BP as to financing a lease-option, how rent credits are vewed by lenders using market rate rents in the future, many attorneys may not be aware of this issue if they are not involved in lending. :)

It's great that you are getting more involved here.

There are a lot of costs involved in development.

Sure would be nice to have a clear cut answer to that, but there is not.There are too many variables involved, remaing term, credit, seasoning and proven payment history, collateral, loan to value, property condition and the details of the contract including the security assignement and foreclsoure process.Best to get bids, and look in your area for other investors, including those who buy RE, your best deal might well be from a local individual looking for a good investment.

As far as the actual work involved... you will need to find out what kinds of permits you need, etc.

Probably not.I also see you are in the Republic of Cali, so what a judge may consider consideration may stem from some other aspect of the contract if adequate consideration was involved, but sounds to me like it's that ten dollars together with other good and valuable consideration thing, if the consideration recited is not sufficient for the scope of business to be conducted, your seller may not be bound at all

Iknow that in Cali the broker has leeway in originating a loan, beyond that, I suggest you get a mortgage broker/originator or ensure the attorney understands and can/will certify the note and you as a Realtor (or investor) not get involved in the processing or setting terms.

You need to qualify that tenant before involving them in anything beyond a lease.

I have a handy spreadsheet that helps me quickly assemble the various numbers (ROIs, cash flows, etc...) involved in assessing a properties potential.

Naturally, if there is a time-framed lease involved, no changes can be made outside of both parties consent to an amendment.