Selling with a Lease / Option

While we are currently looking to purchase property "in need", we have a small inventory to sell. The market is currently slow - so we are entertaining lease with option to purchase. What separates this from the standard lease agreement is that we have set a fixed price for purchase within a window of opportunity (from 1 to 2.5 years). The prospective home owner must make at least a 5% down payment and make "rent" payments consistently.

Why this direction? With a lease purchase, you can typically "sell" for a higher amount than on the open market, for your client is a little more desperate to buy. If you have a house in GREAT shape, the process is easy. The keys to success are:

1) Make sure to get a minimum of 5% down
2) Have the client write you 12 checks (11 of them post-dated) to ensure that they realize the repercussions of late payments
3) Have an iron clad contract - stating EXACT terms of purchase and what happens if the contract is violated (loss of down payment).

In tough markets, it pays to get creative.