CFO Lease Option

CFO Lease Option – Why is the the best way to sell on Lease Option?

CFO or Contract for Option

Most people know what a “contract for deed” or “agreement for deed” or “land contract” is.

If you’re not familiar here’s some background:

Land contracts have been around a long long time.

The farmers in the Midwest during the American Revolution and the Civil War used land contracts to sell land. They sold the land in installments overtime when harvest time came in, so they would make a payment only when the harvest came in.

So what does this phrase mean: contract for option of purchase?

Contract for option means they don’t get the option yet, they will get it down the road.

Let me show you why this is powerful as far as protecting you as a seller on a lease with option.

In a regular lease and separate option, the tenant buyer can bring the optionor to court, and say to the judge that this is not really a lease option bot this is a disguised installment sale.

The judge can say that all monies are returned to the Tenant buyer to get a remedy of the problem.

You really are at the mercy of the courts if you had an option to purchase to a tenant buyer.

So the bottom line is that the contract for option to purchase allows you much more control over the tenant buyer because all the tenant buyer has in effect is a lease and a promise to get the option down the road. In the contract for option agreement you can create certain stipulations that the tenant buyer must get prequalified through a lender and finish the lease on good terms.