Would U?Could U?ShouldU?
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Would U?Could U?ShouldU? (by Ned [AL]) Feb 27, 2024 5:40 AM
       Would U?Could U?ShouldU? (by Ray-N-Pa [PA]) Feb 27, 2024 7:03 AM
       Would U?Could U?ShouldU? (by FloridaNative [FL]) Feb 27, 2024 8:08 AM
       Would U?Could U?ShouldU? (by Roy [AL]) Feb 27, 2024 8:09 AM
       Would U?Could U?ShouldU? (by zero [IN]) Feb 27, 2024 8:10 AM
       Would U?Could U?ShouldU? (by Ken [NY]) Feb 27, 2024 8:43 AM
       Would U?Could U?ShouldU? (by S i d [MO]) Feb 27, 2024 9:08 AM
       Would U?Could U?ShouldU? (by Just Tim [AR]) Feb 27, 2024 10:18 AM
       Would U?Could U?ShouldU? (by BRAD 20,000 [IN]) Feb 27, 2024 1:32 PM
       Would U?Could U?ShouldU? (by GKARL [PA]) Feb 27, 2024 2:58 PM
       Would U?Could U?ShouldU? (by tryan [MA]) Feb 27, 2024 4:01 PM
       Would U?Could U?ShouldU? (by Ryan24 [MD]) Mar 4, 2024 9:59 AM

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Would U?Could U?ShouldU? (by Ned [AL]) Posted on: Feb 27, 2024 5:40 AM

Would you sell a home on contract to a good tenant as long as you:


~15% above market value for the house.

~8.5% interest on the note.

~15% down (enough to cover full cost of a lawyer for foreclosure+time in house unpaid)

~Money escrowed every month for insurance / taxes (insurance kept in my name) --74.132.x.xx

Would U?Could U?ShouldU? (by Ray-N-Pa [PA]) Posted on: Feb 27, 2024 7:03 AM

I did four of them last year.

Notes are so much easier to manage --24.101.xxx.xxx

Would U?Could U?ShouldU? (by FloridaNative [FL]) Posted on: Feb 27, 2024 8:08 AM

Yep. Here we call them Contract for Deed if you transfer the deed when paid in full. Or you couuld do it as regular seller financing. Good for you and good for the tenant buyer IMO. --98.211.xxx.xx

Would U?Could U?ShouldU? (by Roy [AL]) Posted on: Feb 27, 2024 8:09 AM

They would have to have a min. fico score of 700 before I would even consider it. --71.207.xxx.xx

Would U?Could U?ShouldU? (by zero [IN]) Posted on: Feb 27, 2024 8:10 AM

I make them get their own insurance. That way if something happens it doesn't hit me and make my premiums go up.

Have two that will finish this year. Going to make my CF look bad until I can make up the difference. --107.147.xx.xx

Would U?Could U?ShouldU? (by Ken [NY]) Posted on: Feb 27, 2024 8:43 AM

I used to but currently i can sell anything and get cash so until that changes i wont.I dont like selling anything that way in good condition because if i get it back it will be in worse condition.I used to have a bunch of young guys i would sell handyman specials to on payments that needed a lot of work,they could do the work and put materials on a credit card and just pay me off when they sold it. with the advertising i do i get a lot of projects i dont want to do but i could shuffle paper and sell them quickly --73.177.xxx.xx

Would U?Could U?ShouldU? (by S i d [MO]) Posted on: Feb 27, 2024 9:08 AM


There are folks here who specialize in the RTO (Rent to Own) world. It sounds like they do something similar, but the goal is always to limit your risk when the deal goes badly.

I say "when" on purpose. Only about 3% of the RTOs ever end up with they tenant/buyer getting to own the house.

I'd probably do a Contract for Deed or a Lease with a separate Option to Purchase so as to avoid transferring title. Be sure you know your state's laws on what constitutes "equitable interest/title". Once the buyer has that, you have a much harder hill to climb to get them out if the deal goes south.

15% down might cover the legal fees for an eviction, but have you also considered what happens if the get upset with you "stealing their house" and they decide to remove all the copper wiring and plumbing... and perhaps smash holes in every wall? That's the risk banks take, but they have 100,000 home loans so the law of averages spreads out the risk, and then they have deep pockets and easy access to cheap money. As a note holder, you are a bank with one loan. Banks only loan when they have a minimum of 20% down and/or a Govt-backed loan guarantee that they will be paid. You will have 15% down and no guarantee that you will be paid. Consider adjusting your numbers accordingly.


Would U?Could U?ShouldU? (by Just Tim [AR]) Posted on: Feb 27, 2024 10:18 AM

Yes, if it was a house I wanted to sell and didn't have a plan to otherwise invest the proceeds. I have carried the papers before on a sale and will likely do so again.

The good thing about the situation you've described is you already know them and state they are "good tenants." Chances are they will also be "good buyers." --98.174.xxx.xxx

Would U?Could U?ShouldU? (by BRAD 20,000 [IN]) Posted on: Feb 27, 2024 1:32 PM


I'm reading 2 different legal methods in your post.

Consult an atty before you do this.

A Contract For Deed or Land Contract gives the buyer partial interest, your name stay on the property along with their name. You set the price, you set the terms, you foreclose if needed.

In MY state the judge can require you to pay back ever single penny they paid to you over the years, EVEN for taxes and insurance if they give back the property.

Selling by putting the deed in their name and holding a mortgage gives them total ownership. You have to pay capital gains tax on the sale on April 15 no matter how much you have collected on the mortgage.

Research Dodd-Frank laws which limit what you can lend without a mortgage broker license. Owner occupants are highly protected against people like us who just want to cut a deal.

(BTW a mortgage must have certain legal disclaimers, etc to be valid)

Me? I just do RTO. The pay me an Option Fee, get no equity on monthly payments, and usually disappear like any renter.

BRAD --73.103.xxx.xxx

Would U?Could U?ShouldU? (by GKARL [PA]) Posted on: Feb 27, 2024 2:58 PM

I know someone who did an RTO and took a $5000 option fee. Tenants wrecked the place causing thousands in damage and resulting in the City condemning the building. They sued the LL for the option fee and won when the judge treated as a security deposit. Guy is on the hook for thousands of damages plus is having to pay back the option. Still have to screen and be wary if the deal goes south. --172.56.xxx.xxx

Would U?Could U?ShouldU? (by tryan [MA]) Posted on: Feb 27, 2024 4:01 PM

I did that years ago .... 8% small deposit. Wonderful family got Christmas phone calls from them for years.

In the end I WISHED I HAD THE CASH ... it was a great time to buy and cash was king.

Little different market today. Your results may vary. --198.168.xx.xxx

Would U?Could U?ShouldU? (by Ryan24 [MD]) Posted on: Mar 4, 2024 9:59 AM

It depends on your preference and underlying financing. If you would rather have the cash to do something else with then it wouldn't make sense. If you don't need the cash then that may be a great option for you. Just write it up in a way that is easy to get them out without foreclosure such as land sales agreement or cash for deed. Use an attorney --73.135.xx.xxx

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