All Topics / The Treasure Chest / Lease Option Numbers

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  • Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    Hi All

    Just wondering how the numbers are worked out for a lease option. I know the purchase price is marked up 20 to 25% or what ever your criteria is. But what I am wondering is how the rent amount is decided. Is it calculated, plucked out of the air, Is there a standard mark up on the rent?

    Also does the solicitor do up the lease like a wrap contract or is it obtained else where.

    Do you know any good sites for more info
    s-m-b.com.au is current under construction.

    Cheers
    Leigh K[:D]

    Read, learn, grow but most of all do it.

    Profile photo of ProfiteerProfiteer
    Member
    @profiteer
    Join Date: 2003
    Post Count: 29

    quote:


    Hi All

    Just wondering how the numbers are worked out for a lease option. I know the purchase price is marked up 20 to 25% or what ever your criteria is. But what I am wondering is how the rent amount is decided. Is it calculated, plucked out of the air, Is there a standard mark up on the rent?

    Also does the solicitor do up the lease like a wrap contract or is it obtained else where.

    Do you know any good sites for more info
    s-m-b.com.au is current under construction.

    Cheers
    Leigh K[:D]

    Read, learn, grow but most of all do it.


    Hi Leigh

    From what I understand when considering how much rent should be paid, it all boils down to what you are comfortable with when negotiating the amount with the purchaser….ie create a win/win situation and make a profit at the same time….You have to consider the fact that if you ask too much there will be no attraction for the purchaser and if you ask too little there is no point in you considering the deal…..You need to do the numbers considering several situations and look at what creates a win/win situation. This probably hasn’t helped you out that much but it’s my 2 cents worth.

    Magnum [:)][:)]

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