Posted by Phil Pelletier on December 28, 2005 at 13:48:08:
You can tell your “tenant” (respect?) anything you want. Whether they will part with that kind of cash for the right to purchase a $200,000 home two years from now is doubtful. The idea behind a true lease option is for everyone to benefit. The seller covers his payment, the price of the home is higher than current market, but right at or below market in two years, the “tenant/BUYER” has a significant credit accumulated towards purchasing the home at or below market price. It sounds like you wish to take $20,000 in cash, pocket $10,000, and sell them a $200,000 house for $200,000 in two years. Sounds like a crappy deal for everyone but you, and usually those deals don’t get done and you end up paying your monthly payment longer than you wold if you did a deal that was advantageous for everyone.
Just my humble opinion.
Phil