- Joined
- Feb 26, 2008
- Messages
- 83
Hi there...
I am working on my first RTO deal and I am using the RTO Worksheet that I found in the forms section to run some calculations.
Within the RTO worksheet and under the "Profit from Sale/Transfer" section, there is a line item called "Add: Exercise of Option Fee".
I have scoured Mark Loeffler's RTO book for an explanation of the term "Add: Exercise of Option Fee" but I can't seem to find it.
My interpretation of this is that the tenant/buyer is charged a certain amount to tell me that they will buy the home at the end of the lease term. Is this right? If yes, what calculation is used to determine how much the fee will be?
Any advice will be appreciated !
Thanks...Tony
I am working on my first RTO deal and I am using the RTO Worksheet that I found in the forms section to run some calculations.
Within the RTO worksheet and under the "Profit from Sale/Transfer" section, there is a line item called "Add: Exercise of Option Fee".
I have scoured Mark Loeffler's RTO book for an explanation of the term "Add: Exercise of Option Fee" but I can't seem to find it.
My interpretation of this is that the tenant/buyer is charged a certain amount to tell me that they will buy the home at the end of the lease term. Is this right? If yes, what calculation is used to determine how much the fee will be?
Any advice will be appreciated !
Thanks...Tony