Hello to anyone viewing this post…
Is it feasible to structure a lease option that 40% of the Gross rental income for the duration of one year would apply to the down payment in conjuction with the “option money” or non-refundable consideration money (what I am trying to convey is that you refund a portion of their rent money if they opt to purchase) or is it preferable to just credit a portion of the monthly rent (5-10%) towards the down payment of the property?
To clarify my statement, I mean collect two monthly checks, one check applying to the rent ($900) and one check ($100) applying to the down payment if they opt to purchase
If they are late with the portion of the rent/lease option money for one month, example they pay the $900 dollars towards the rent, but neglect the $100 credit toward the down payment, should you
a) levy a late charge (per day) and/or
b) stipulate in your contract if party (potential buyer) refuses or neglects to pay $100 credit towards down payment within 3 days that rent is collected, this shall void the purchase option of the lease-option contract and any monies that was collected prior to the breach of the monthly obligaton is non refundable. (including option money and credit monies)
Am I on the right track, or does my question indicate I don’t know what I am talking about?
Fellow wealth pursuers, please give me some feedback
thanks a lot