And while it's true that if the buyer couldn't get a loan and was unable to exercise the option the rehabber would keep the option fee, that also would result in potential lost opportunities for the rehabber/seller (other potential buyers, possibly even willing to pay more), all while they continue to pay holding costs.

Or get an option agreement and then assign the option or don't exercise it.

Every escrow and property is different, but as long as the contingency is exercised in good faith, it is up to the buyer's discretion and approval for the most part. 

In a Lease Option the loan is still in place but the Deed doesn't convey (change hands) until the Option is exercised.The differences are in how foreclosure happens in the event of non-payment and the underlying mortgagor has the option to exercise the Due on Sale Clause.

Our market is tight and competitive, so be patient, run the #'s w/ thorough due diligence, and exercise discipline in not overpaying just to get a deal.  

What other billable services can enhance the arrangement?

Thanks for the well wishes, but more so for the advice to exercise caution and the analysis.

BillNow what idiot is going to buy subject to the option unless there is very little chance of the option being exercised, and even with very little chance there is some chance.

A BP podcast had just discussed this idea.Never underestimate the importance of property management to enhance value and increase cash flow.

I will give a seller concession for closing costs at exercise (vs 'purchase credits') declining the longer it takes them to buy.