All Topics / The Treasure Chest / Lease Option Question – Equity Growth

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  • Profile photo of RoofarmerRoofarmer
    Member
    @roofarmer
    Join Date: 2003
    Post Count: 63

    I understand that you are able to access the equity growth of the underlying property under a lease-option agreement. What happens if the end purchaser then cashes you out and you have already committed the equity growth money to another deal? Won’t the bank want the money back as you no longer own the property?

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    Unless you can substitute another property into that loan then there is no longer any underlying concern hinging the equity so my untrained opinion would be you are correct Roofarmer. Hey you L/O people out there…..is Roofarmer right ??

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    Edited by – [email protected] on 05/02/2003 11:30:14 PM

    Profile photo of RodCRodC
    Member
    @rodc
    Join Date: 2002
    Post Count: 335

    Sounds right, maybe you shouldn’t access any amount greater than the agreed selling price under the l/o you have with the end purchaser. After all any capital gain greater than this amount isn’t really yours unless tha option lapses.

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