Hi Investor1313!
Perhaps an example will help clear your fog.
Say you buy a property for $180,000 and have a client that will lease / option from you on a 12 month contract at a purchase price of $200,000.
They pay you $2000 to take up the option and will pay rent of $200 / week of which you will credit $20 as an option fee. The two scenarios…[Read more]