Looking for some advice on doing a lease option in MN. I have a home I am purchasing from a client (I’m a licensed agent) for approx 490K. I already have a tenant that wants to do a lease with an option to buy for 550K. They have about 10K to put down and will probably be able to get traditional financing within 12months.
I’m looking for the best way to structure the deal and not get myself into any issues if they dont make the payments and I need to evict them.
Also I’m wondering if anyone has had experience with taking a large commission at closing, ( essentially taking all the profit up front as a commission) on a deal such as this and are there any risks associated with doing a deal like that.
Thanks for any and all advice
jw