land contract sandwich - Posted by lou

Posted by Ronald * Starr on July 09, 2001 at 21:21:04:

Lou----------

Option consideration is a negotiable item. So, go for what you want, compromise to what you can get.

That said. There does seem to be a tenacy for straight options for periods of 6 mos to about 2 years to be roughly – roughtly – 1 to 3% of the purchase price.

I’m not an expert on the tax question. It probably is determined by the exact structure of your deal. For instance, I think if you sell your land contract that would be a capital gain.

Why mess around with a lease-option? If you have the right to purchase the property for about $40K less than the market value, why not just sell it right away and get your profit and use to to finance some other deal? Why screw around? Why make it harder than it has to be? If you want to learn about lease options, you can do that on some other deal later.

Good Investing******Ron Starr*********

land contract sandwich - Posted by lou

Posted by lou on July 09, 2001 at 13:59:40:

I entered into a landcontract as a buyer and would like to lease option it out. How would I close such a deal when it came time? What is the usual option amount? Is there some rule of thumb? I’m looking at about 40 thousand in equity if I can sell it at market value. Will that all be capital gains?