I have a gentleman who wants to buy a property. it is a good deal. price is 30K (18K purchase + 12K escrow for violations)
he has 10K
he wants me to buy it for him, he would give me 10K as down payement and will pay me 600 per month (+ taxes and insuarance) for 60 months (5 years).
So wind up making 16K in 5 years (equivalent to %16 or so interest)
He is a good guy and seems to be very reasonable.
How should I structure this? a land contract or lease with purchase option renewing option 5 times for 1 year periods?
land contract will leave me with ni liability right? also foreclosure is longer to execute (I doubt he wd walk away but you never know)
lease with option keeps in control
which one makes more sense.
Also should I buy the proeprty then take his check or ask hi for his 10K right then when closing and added to my money. would he then write a cashiers check? and wd it be made out to the title company or to me?
Any other advise on how to proceed? this need to go down on paper tomorrow. please advise. give yr opinion I understand the thing about having the need to see a lawyer. thanks