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I know thats all you can do but what can you do if it doesnt appraise and the seller wont drop the price and the t/b doesnt ahve money to bring ot the table? What can you do?

2. What happens if you get the house from the seller for $275 and the tenant buyer pays you $25k which makes it $300k and in 3 years the house appraises for $275k ... and the seller doesnt want to drop below $275k.... he says I sold it to you for $275k thats what it appraised for so i cant drop it and you already spent the $25k what can you do at that point? Also can you make the $25k not go to purchase price?

I'm trying to learn comps could someone help me. http://tinyurl.com/6vuxksr that house zestimate says its $646... I look at a few houses with similair sq ft and bedroom sold recently G: $540k D: $615k F: $431k X: $620k they seem to be all over the place ... 1) what is the comps for this house? 2) how do i figure it out..i want to do a lease option for 1 or 2 years and I want to make sure the house will appraise when i sell it

1. i have a landlord that wants to do lease option, but he wants to put the purchase price "price base on appraisal in 3 years when they option to buy the house" ... now im trying to understand how that works... do we do an appraisal in 3 years and see what the price is than? now ... if we do the appraisal what if the bank appraisal comes in lower than our appraisal so who would do the appraisal us or the bank... if the bank does it what do we set as the purchase price? 3. if we set it to appraise in 3 years... how can I make money from this deal.... Can i make the option consideration not go to the purchase price or the down payment.. it would just be my fee... and not applied to purchase or down... is that legal?

1. do you include a CYA (cover your ass) letter in lease option.. about due on sale clause may be called due? If you mention that they may call the loan due many people will not want to do lease option.. how do you explain this to them? 2. Right now i am contacting land lord who are renting their house asking them if they want to do a rent to own.. most say they only want to rent. and the ones that want to do a Rent to own wants really high prices which I dont think will appraise in 3 years.. have you had any luck getting lease to own from FOR RENT ads? if so any examples? 3. If the house is currently appraised at 200k ... would you try to sell it to your tenant buyer for higher than 200k like 225k? In this market if it doesnt appraise it would be tough for the t/b this is a big concern for me.. do you normally go higher than current comps? 4. i'm just starting out... approximately how many lease option do you do a year..?

@ JvM for the 500k property how much is the option consideration?

you have been very helpful...some more questions 1. i thought i had nothing to worry about in due on sale clause for lease option becuase title doesnt transfer until they execute the option to buy but some people are saying that as long as you have a lease option they can trigger the due on sales clause.. is this true? 2. what is the normal process when doing lease option... do you write an agreement that says contingent upon you finding a t/b so you dont pay the monthly fees if you cant find someone yet? that seems to be the best way.. 3. My main concern is if the property wont appraise and the owner cant drop the price.. they lose the 25k option payment... if it doesnt appraise in 3 years... it's not really my fault if i do the sandwich lease right? because they agreed to the price... 4. lets say i get a house under contract from seller 200k house, 1500 monthly... $0 option consideration. and i sell it to t/b $225k , $1500 monthly, $25k option consideration... when he goes to the bank to get a loan in 3 years.. is the 25k considered down payment? so he doesnt have to put anymore money down..?

1. if you secure the deal... when do you make the first payment? when the tenant buyer comes in? what if it takes you 4 months to find the tenant buyer do you keep paying the monthly fee until than? 2. is there a limit on how much money i can take from the t/b ... 3% is too low for me... i have t/b willing to pay $40k any risk on that?

how come you guys are only taking $5 as an option consideration when you guys are doing lease options? I have buyers who have 25k or even 40k to put down on a lease option... that shoudl be applied towards purchase price...also what is the risk involved in taking a lot more moeny from the tenant buyer?