Posted by Mike W on October 29, 2004 at 13:31:14:
As someone in the mortgage business, you know that people can buy the house with less than 10 percent down. So what are you offering that is better than that?
You are offering HALF the equity, when a credit worthy buyer can get ALL the equity. So, you have eliminated all the buyers than CAN qualify for an new loan. That leaves the credit challenged. Are you an experienced landlord? You will be when this is done.
I would be willing to bet, a) you don’t have the proper documents to protect yourself from the tenant/buyers mistakes, and b) don’t have the proper setup to protect yourself from YOURSELF. This is NOT a knock against you, its just that you don’t know what you don’t know. A dangerous position if you get squeezed.
How will you set your price? Will you give them equitable title now? How will you secured it? How long a term will you give the tenant/buyer? There are many more questions you should have answers to BEFORE you make the property available to others. Let me know if I can assist you with your tenant buyers.
I hope this gets you thinking,
Michael W
Las Vegas, NV