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  • REI In Your Car 111: Joe Answers a Question about Lease Option Consideration

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As most of you know, I love to teach about lease options. Whenever I talk to a group on the subject, I’ve noted the most misunderstood facet of the process is the “non-refundable option deposit.” (Also known as the “option consideration.”)

True to form, I just received a question on my Podcast Hotline on the subject. This question more specifically is: How do you get that deposit money if you decide to step out of the equation? And how does the tenant buyer then use it for a purchase credit?

Just in case that’s been a puzzler for you as well… I explain this issue in great detail.

I know that many of you have been told this whole thing isn’t even legal. Don’t listen to those lies. I’ve been doing lease options — with the option deposits — for years and have never had a bit of legal problem.

Listen and Enjoy:

What’s inside:

  • Why having the right mortgage broker is important
  • To whom does the tenant buyer make out the option deposit check?
  • How can the tenant buyer ever apply that deposit as a purchase credit?
  • Why some people try to tell you this is illegal (and why it’s not)

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