Basically, I have had a few calls where people want me to buy their home then rent-to-own it back to them? :arrow Good idea or not so good idea? Any horror experiences out there?
Thanks for all of your answers in advance. :exclaim
My state’s AG frowns on this type of situation and I have seen some draft language for new laws that would make it illegal. I think it’s a bad idea in general because it is very easy to claim you are taking advantage of them.
NO Dont do it…
Bad idea! There is a famous court case where a couple of investors did this routinely. The tenant buyers who were in default before the deals were done, ended up defaulting again and a group of them did a ‘class action’ suit with criminal charges filed…the investors are serving time in prison! Not sure of the details but this is one of the worst ideas you could consider! Do not do this! EVER!!
If you can’t find a new tenant/buyer, do not do the deal.
Rob