I am totally and completely new to this… Since it is a buyers market and we are currently building a new house, we need a creative way to sale/lease our current home. We have a prospective buyer who we are going to meet with and talk about owner financing/lease option. I want the easiest way to get the deal done but also to be able to get them out if they do not pay. Our house last appraised for $176k. We owe $160k. I am just wanting to unload it. Can you give me some ideas on what would be fair terms and the best option… Thanks in advance. :biggrin
What are the monthly payments on the mortgage?
How much are you paying in taxes each year?
How much is the insurance?
What is the market rents for a property like yours?
You need to know these things before going ahead and leasing your property out.
The mortgage with taxes and insurance is $1250/mo. Not sure about the rentals in the area. Good question… I’ll have to research that.
I know the insurance is approximately $879/year.
Property taxes were $620 last year.
Both are escrowed into the montly payment.
You sound like a motivated seller, and that’s not a good thing. Oftentimes, that means you might rush into the first thing/person that comes along. A lease purchase can be a great means of achieving your desired end result of being rid of the property. But you need to know what you’re doing, or risk facing another, possibly worse situation, a few months down the road. For example, what paperwork are you using? Something generic from Office Depot is a disaster in waiting.
I respectfully suggest you take a little time to study up on this before plunging ahead.
Thanks for the input. :biggrin We haven’t done anything yet. I was trying to research my options and found this forum. I do not even have any paperwork yet. Not sure where I will get my paperwork. I have a friend at a title company who might have the appropriate contracts. I am definitely a motivated seller but trying to explore all options. Thanks again…
I like motivated sellers.
I’ll give you $26k cash, and YOU pay the closing costs! :deal
Where in FL are you? Carbonare is down there. He might be able to offer some advice or help. You can get him at his website probably: www.naked-investor.com
:cool okay here is what you could do ::::SELL your home on owner finance get all the paperwork from a local real estate lawyer so you know it is right. THEN you add a t least 5 % to the full apprasial value you said this was 176 k ? YOU then have the buyers put 5 % down now you have a note balance of the full apprasial value you sell the note through a good broker and you walk away with abot 75 to 80 % of the full apprasil depending on your buyers fico
and if they fail to make a payment it is not your trouble
but you will not get all the money on this deal to payoff your mortage as your balance and the apprasial are very very close so you would have to payoff the differance to the bank some
You could also sell it and carry a 2nd. As long as their 1st pays off your mortgage, then you don’t need any money out of pocket. You can sell the 2nd as well.