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Hey, everyone. Couple quick ones here. Crediting a buyer with seller concessions for on time payments to go towards closing costs. How does this work if, to me, it just sounds like a credit on paper? Okay we knock $3600 off the strike price to cover your closing costs. How? Also, is the option consideration the t/b puts down to you also the down payment for their loan? I've heard it both ways. That, yes they can use it as their 3.5% down on an FHA, but others have said no, they have to come up with a "real" down payment down the line when they exercise.

I had recently came across a small deal in the 50's while doing my marketing for sellers. I looked at it and agreed to do a rent to own. For the amount of time and effort I put in it, I did learn allot of things that go into doing a rent to own and believe that this will spring board into bigger deals. From other investors I talk to that do rent to own, small deals are good, but you will put the same amount of work into bigger ones with bigger profits! I consider this Evan University, freshmen orientation! Keep moving forward! Evan

What do I need to know about FHA guidelines as they apply to lease option agreements? OK, so I get a seller under contract, then I find a tenant buyer who pays me the option fee, which is also my consulting fee. I keep the fee. In exchange for the fee, I assign to the buyer my interest and rights in the agreement I signed with the seller. Before the end of the option period, the buyer exercises his right to buy the property. The buyer has to get financing to buy the property. In order to get a bank loan, the buyer has to come up with a down payment. There is a whole set of do's and don'ts that apply here. And the exact rules vary according to which government guarantor we're dealing with. Problem: The buyer wants my consulting fee to count as part or all of the down payment, but the "down payment" was never paid to the seller. Question: As the investor who wants to not be sued and wants everyone to be happy, so that I'll get referrals down the road: What do I need to know? What do I need to do? What do I need to not do?