L/O Vs. Owner Financing
What is the different between L/O and Owner Financing to the sellers point of view? I understand it from the buyers point of view. Also, what is a good down payment on owner financing for a $150,000 house? Also, what is a good down on a L/O on same $ house? 
depends on the equity in the house. figure conventional methods of selling house will want anywhere from 10% - 20% down. you can play in the same range.
With L/O, you can only get little downs so don't think it's big. I've only heard of people getting as high as 10K with L/O and those are on nicer homes. I'm not a L/O person I really don't know, but I am asking for 30K down on a 200K house and 10K down on a 95K house. (onwer financing)
do some research in your area and see what the average downs are.
A lease option gives the buyer the "option/choice" to purchase the home if they choose in a certain amount of time. That way, the seller can price the house higher based on the future FMV of the home. Also, a larger depsit will be required. Since the tenant has the option of buying the property, she/he will assume more responsibility for the maintence of the property, it's like being a "home-owner in training."
With seller financing, the buyer actually purchases the home, their name is on the deed. The seller acts more as a bank. Usually an attorney is required to draw up the proper paperwork.
The down payment is usually between 5 - 20%, whatever the buyer/tenant can afford or you feel is sufficient. If they put a lot of money down, the theory is they will take better care of the property.
Hope this helps.
Dee
Actually Dee, with a Land contract/ Contract for deed, the buyer does not receive the deed untill all obligations are fulfilled. The Lease option is a rental agreement coupled with an option agreement in which the tenant has the option, not the obligation to purchase the leased property at a future date at a predetermined price. If at any time, the tenant fails to perform their lease obligation, the entity that controls the property and leased it to the tenant, has the option to use the eviction laws of that particular state. In the Land contract/CFD scenario, the Buyer is exactly that, the buyer. Therefore if they fail to live up to their obligation, the secured party may avail themselves of that properties state foreclosure process, and also may incur a taxable event. I hope this clarifies things for you.
Good Luck,
Shawn(OH)
This is all really helpful, but why would a seller choose a L/O over a Land Contract. Seems to me a Land Contract would be more desirable to the seller. They seem to get more $ down.
depends, does the buyer want to own the house or just live there for awhile. I sell on Land Installment contract because I want the bigger down and leasing people are rough on the house and I'm not a repair guy. It all depends on you and the situation.