Posted by Rob FL on May 25, 2000 at 08:15:40:
There are a bunch of how-to-articles on this subject. Read them all.
Generally you use 2 documents. A lease and an option. You would still hold the title until your tenant/buyer actually got their own financing (either from you or a lender).
Rent to Own agreement!!! - Posted by jay
Posted by jay on May 25, 2000 at 01:59:32:
I just purchased a house that is in the process of being rehabbed…I want to sell it for 85K…how would i structure a rent to own agreement…Would i take back a note? or get another mtg? could someone please explain this to me…give me a scenerio, an example to go by…
Re: Rent to Own agreement!!! - Posted by Steve(NC)
Posted by Steve(NC) on May 25, 2000 at 10:21:06:
We would need to know some more numbers but here it goes anyways.
You run ad and get someone that wants to l/o it for a year. You collect 3-7% upfront as option consideration from this person (sort of like a down payment…but it is not)…
You then sign 2 separate contracts with them…a lease and a option.
Ex:
Sale Price $85,000
Monthly rent?? $800
1 year term (they can buy it tomorrow or in 12 months or never…the option money is however non-refundable!).
I have left out lots of “little” important details…but cant teach you how to do it in one posting.
Hope this helps…
Steve (NC)