Lease Option

Ok I will try to keep this short. I just got the Ron LeGrand Lease option system which I think is really good information. My question is this Lets say I have a house that I get under contract for L/O. That part I under stand now I am going to L/O it for $100,000.00 and I get 5% up front for the option agreement ( does that go towards the perches price of the home). Now if I under stand this right that would bring the end users price to 95,000. No they pay me the next 2 years $1,100.00 which would break down as such. 900.00 for the mortgage pay payment and 200 in my pocket. Now does that 900 * 24months=21,600.00 come off the purchase price of the home ie. 100,000.00 - 5,000(option agreement) - 21,600.00 (lease payment) = 73,400.00. Please let me know if I am understanding this right or if I am way off. Thanks for the help Aaron

understanding is that you should have an aggreement on the amount of the monthly payments the will be credited to the predetermined purchase price between you and the buyer. For example, if the payment is $1100 then you may give a monthly credit of say $200. this breaks down to $4800.00+$5000=$9800.00 after 2 years.
purchase price: $100,000-$4800(rental credits)-$5000.00
(5%up front)=$90,200

ok so then the monthly payment does not go to the purses price just the option & rental credit. Ok thanks for the help.

glad to help. tell me how it goes. 8)

will keep you all posted :stuck_out_tongue:

The option price is non refundable, and it is NOT! applied to the purchase price, unless you want to apply it.

The monthly payments are not applied to the purchase price either, unless you agree for an amount to be credited.

so if your payment is 900.00 and you charge 1100.00 without offerring a rent credit then yes those 200.00 are yours to keep.

Now if you decide to have these credits then in your asking price you include these credits, so if your initial asking price is 100k with no credits then. Your asking price would be 100k+4800+5000= 109800.00 with credits

so that way you end up with your same initial profit other then less.

Make sure you only offer one of the prices not both.