Can you purchase a home on Land Contract then turn around and lease option it to someone else??? it seems like a dumb question but i couldnt find the answer when i did a search… i have a oportunity to do so… I have a buyer and a seller willing to sell to me on land contract so i was going to use the option fee from the buyer to either pay for the down payment for the land contract or purchase the LC myself and get it paid back in the option fee…
Never thought about it before but if the LC is writen to make this allowable then why not. An alternative would be to just assign the LC to your buyer. Both options should be cleared with the original seller and have a lawyer write it up so your posterior is covered. Herbster
thanx herbster :beer
You can certainly do that chuckfrommichigan. How good do the numbers look on the back-end? Unless they are really good and rock solid, you might consider selling your land contract to your end buyer or another investor. It all comes down to would you rather make a quick nickel or a slow dime? Since the market tanked, I have not bought a single property. I would rather flip it (and make a quick dime) than hold it and hope that the market has reached a bottom.
Joe makes a good point but you should also realize that all Land Contract Notes are sold at a discount. Note investors and this is a guess may shy away from buying LC Note if a Lease Option is attached. I’d confirm this info before I relyed on it. Herbster
Good point… but I’m not talking about selling the Note. I am talking about selling the contract to an end-buyer (someone who is going to live in the property) for an assignment fee. Or maybe even to an investor who just wants to stay in the middle?
Not a big deal - just a minor distinction. Not disagreeing…
Right on brutha.