FUNDS RETURNED TO BUYER (YOU) WHEN THE OPTION IS EXCERSIZED

(Assumes 10 years and property shown below..)
Original Cost of Option:   $2,000
Returned from rents:   $15,000
Total Returned   $17,000

 

TYPICAL CASH REQUIREMENTS FOR BANK FINANCED REAL ESTATE CLOSING

(from an actual sale)
Property Info
Purchase price:   $40,000
10% Down Payment:   $4,000
Financed by Bank:   $36,000
Annual Real Estate Taxes:   $3,000
Bank Interest Rate:   7%
Points (Bank Discount %):   2.00%
Settlement Costs
Closing Costs:   $2,838
Prepaid Items & Reserves:   $3,605
Total Settlement Costs   $6,443
Cash Needed
Settlement Costs   $6,443
10% Down Payment:   $4,000
First Month's Mortgage Payment   $546
Total Cash Needed to Close   $10,989

 

TYPICAL CASH REQUIREMENTS FOR LEASE - PURCHASE CLOSING

(Same Property)
Cost of Option (Returned when you purchase the property)   $2,000
First Month's Rent   $725
Total Cash   $2,725