TAX DEFERRED OPTIONS FOR LEASE PURCHASESFirst American Exchange Company, LLC
June 23, 2010 — 217 views
Leasing property to a potential buyer serves a variety of purposes. The structure is most frequently used when a potential buyer, for whatever reason, does not have the funds available to purchase the property immediately. The advantage to the buyer is having additional time to obtain the purchase funds (or financing) while still having use of the property. For the owner, rental income is generated while a buyer and purchase price are locked in, provided the buyer can secure the needed funds or financing within a given period of time.