Posted by John Merchant on March 06, 2003 at 19:34:40:
I agree you ARE taking a BIG chance with this deal…what’s it going to cost you if she doesn’t pay you, before you can regain possession of the RE?
I’d feel much more comfortable leasing it to her, with an option to purchase for $x amount, within certain time, etc., and with a % of her rent payments being credited toward the purchase price…this gives her a chance to see if she can handle the property, and lets you get it back quickly if she can’t.
Hi John. Here is my dilema. I just purchased an investment property for $49000. I used $12000 of my own money for down payment and closing. I have a single mother who would like to buy it off of me as I would hold the mortgage. My mortgage is 405.00 a month. I will be charging her 640.00 a month for the next 30 years. She has no down payment money and I am taking a huge risk here. The garage that comes with the home will be my property for the first fifteen years. I already have it rented out for 60.00 a month. My question is this…Can I state in the papers that I am going to have drawn up by a RE lawer that she can not pay me off withing the first 4 years? Can I also state that the garage is mine for the first fifteen years? She is aggreeable to all terms. Thanks so much for your input. Butch