Seeking advice on lease with option to purchase - Posted by Rick Shepard

Real Estate Investing Triple Net Leases
1

Posted by Clint Miller on December 10, 2003 at 08:18:24:

330/12 = 27.5 per month
You need to break down your interest and principal on the remaining 222.50

IMHO

Clint

2

Seeking advice on lease with option to purchase - Posted by Rick Shepard

Posted by Rick Shepard on December 10, 2003 at 07:46:42:

Group,

I have just done a deal using Ernest’s triple-net-lease with option to purchase. Here’s the details:

98 Oakwood purchased and rehabed for $7,400
Sold for $14,850 with $2,500 down and payments of $250 per month.

I just started using Ernest’s contract and my question is this. I stated to the purchaser that thier payment would be $250 per month including insurance and taxes. I paid the first year’s insurance out of my loan proceeds which was $330 per year. How do I break this payment down and what is the correct way to account for it? Also, I heard that I would have to open an interest bearing account to escrow the insurance portion for my buyer. Can anyone enlighten me?

Thanks

Rick (WV)