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fsbo on owner contract with balloon payment in 6 months

Posted on: Fri, 07/27/2012 - 16:22
fsbo on owner contract with balloon payment in 6 months

I have some tennants in my home that are interested in purchasing but do not have very good credit. we owe pretty much what the house is worth, and has negative cash flow. so my question is, can i sell it to my tennants on an owner contract, with a balloon payment to be made in 6 months, after they get their income taxes ? then they would also just need to get a refi type loan

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Posted on: Fri, 07/27/2012 - 16:50 #1
Matt

Get your tenants pre qualified with your broker to ensure they will actually be able to qualify. Otherwise it will be a big waste of time. The property will have to appraise for what you are selling it for or they will not be able to get a loan in the first place.
So, your plan will work if they can actually get a loan and you sell it at appraised value.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

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Posted on: Fri, 07/27/2012 - 18:53 #2
fsbo on owner contract with balloon payment in 6 months

You probably should consider renting to your tenants until they can qualify for a home loan. You are taking all of the risk under your scenerio. Keep the cards in your hand whenever it is possible. If they want to perform by getting the loan then you can sell. Keeping things under your control is a good idea in a real estate deal.

Keep moving forward and you will do well.

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Posted on: Fri, 07/27/2012 - 21:26 #3
I would never rely on someone

saying they will pay you with the money they get from the income taxes. YIkes!!

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Posted on: Wed, 08/01/2012 - 02:17 #4
That is risky, just do a Lease Option

I wouldn't give them ownership of the property with an owner carry back. I would just set them up on a lease option and not give them title to the property. If they perform on the deal great, if not then they only have a contract for the option to purchase the property.

Great creativity to put this together. That is what it takes to do deals most of the time.

Mikessler

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