Joined the Short Wheelbase Club *69 Tahoe Project*

[Frizzle Fry]

You have a PBDM too, right?

The lease option is similar to stock options in that you are guaranteed a purchase price for an asset. Stock options are generally issued as reward units where as a lease option is secured with a fee that may or may not be later applied toward the down payment for purchasing the property.

In my case we agreed on a purchase price, and I paid a fee for the right to buy the property at that price in 14 months time. The money I put toward that fee applies toward the down as well as a percentage of the monthly rent. So at the end of the contract, when I purchase the home, I will have built more equity than with a conventional loan in the same period of time. The risk: If I do not secure financing before the contract expires I loose the fee and monthly accumulated funds.