Hi, I am trying help out a friend who wants to move to Arlington, TX. He is not able to qualify for a home loan due to non-verifiable income and other minor issues. To help make this easy for him I have agreed to purchase a home in my name (since I have good credit) and then sell it to him owner finance. We were thinking something like signing a lease to make it appear that he is renting from me to pay the mortgage and cover me if I were to purchase another home this one would be a wash or close to it financially, having a lease agreament. Also, if he is late on the rent more than so long, I could evict him, take the house back, and rent or sell to someone else. We also wanted to do a contract for deed parallel to the lease stating that he is purchasing the house for me but the lease agreement has to be met until he pays off the house. If the lease is violated then it voides the purchase of the house. I am not sure if this is the correct approach or not. I am not very experienced in real estate and am looking for advice on how to do this deal. What would be a good method? What is the best way to do it to protect him and myself and what forms should I use. Any advice would be appreciated and when I get closer to finding the house I may be looking for someone to help me out (for a fee of course) with the forms and so forth if they are in my area(DFW).
Sincerely,
Gary 