Easily Insert Selected Option into the Contract Leasing

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How to Insert Selected Option into the Contract Leasing

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whats going on guys alex here and were back for another video excuse me um sorry for the wait im gonna try to do better with posting more content on this channel and in this video were going to go over how to fill out a wholesaling lease option contract this is the contract that you will use when you qualify a seller over the phone you meet with them in person and um you both determine then that you both want to move forward i even present this no matter what so basically i tour the property um eventually we get to a point where we sit down usually at the kitchen table and i go over the options with them on a separate sheet of paper ill probably do a different video for that as far as how i present the offers and then usually its a wholesale lease option all the way because weve already had a conversation over the phone so i know which one to use and its a one-pager just gets me permission to market the home youll see some to be determined in there because some of the stuff i

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What triggers lease remeasurement?

There is a docHub event or a docHub change in circumstances that is within the control of the lessee that directly affects whether the lessee is reasonably certain to exercise or not to exercise an option to extend or terminate the lease or to purchase the underlying asset.

What is a change in the lease term?

Lease modification: A change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease (for example, adding or terminating the right to use one or more underlying assets, or extending or shortening the contractual lease term).

What is the difference between lease modification and lease reassessment?

ing to the IFRS 16, A re-assessment of the lease liability takes place if the cash flows change based on the original terms and conditions of the lease. Changes that were not part of the original terms and conditions of the lease would be considered as lease modifications.

What is a reduction in lease term?

A reduction in lease term will result in a modification of the liability and asset that is less than you have recorded. Any early terminations may result in a gain or loss for any difference in the reduction of the lease liability as compared to the reduction of the right-of-use asset.

What does an option mean in a lease?

A lease option is a type of real estate contract that gives renters the option to buy their rental when their lease is up. The propertys owner forfeits the ability to sell the property to anyone else during the lease term, and in exchange, the renter pays an upfront option fee and often a higher monthly payment.

How do you treat a lease modification?

As can be seen from the diagram, a modification will only be treated as a separate lease if it involves the addition of one or more underlying assets at a price that is commensurate with the standalone price of the increase in scope.

What is lease liability reduction?

The lease liability represents the obligation to make lease payments and is measured at the present value of future lease payments. Once we have gathered our information, i.e., we know the lease term, the lease payment and the discount rate, we simply discount the liability over the lease term, using the discount rate.

What is considered a lease modification?

A lease modification is defined as a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease.

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Insert Selected Option into the Contract Leasing