Bought it with NO Credit Pulled! :-)

So, since you are referring to them as "tenant/buyers" are you doing this as a L/O w your buyers?

If so, what are your terms? Length of time? Option fee? Resell price?

Thanks

Karen

Yes, looking to do a LO on back end. $5k option fee, $1200 monthly payment, will do (3,5,7 yr terms) with a sales price not less than the $165k mark. I'll amortize it out as to whether I go LO or rent to own. my contract are extremely similar. Either way it states in the event of a default the contract reverts to the standard tenant/landlord law in AL. I evict, no foreclosure. I had one turn in March. Filed the unlawful detainer on the 6th they had 7 days to cure or vacate. I had keys on the 15th and had them pre-sign deed we recorded. Game on again! lol

What was their motivation to sell? Were they behind on payments? How are you handling the insurance. You mentioned the t/b was going to pay taxes and insurance. Does that mean the insurance policy is in their name?

no, all payments are current. they were splitting again. They had gotten a divorce and had 'worked things out' and got back together. They did not remarry upon their reconciliation and now the wife has an issue with his current girlfriend (go figure.....I know women can be so UN-flexible when it comes to sharing - lol JK!). Home is in her name, but after job change can't swing the payments solo when he moves out aka money stops. It was a weird situation, met both them at the property yesterday. They refi'd in 2009 and pulled some cash out. So it's not as though the property hasn't already paid them. They understood that. They both had a bad taste in their mouths about Realtors and wanted nothing to do with listing it and have people track through their home. They just wanted problem gone now.

Insurance is dependent on which way I go. LO I will escrow it in. because they will be renting with option to purchase. meaning no deed, can't get insurance on property. If I rent to own I have issued and in the event of default pre-signed deed held in escrow then I'd just record. They carried insurance and I was listed as Lien holder so I was notified in the event of non coverage. I have also done it on another property were I billed them back the cost of insurance and property taxes and the deed never transferred. I've got a call in and will consult with my attorney and see which is the best fit. Some of the owner finance laws will be changing on in April. So, I'd do whatever adheres.
My preference is to keep this property. It's in such a good/desirable/steady area. A strategy to allow for long term cashflow is preferred.

So bottom line, I will either cashflow $300 or $400 on this. The rest is simply paperwork.

That's how you do it. Great job SIMPLE

Jen,

you so rock! that's all... I'm speechless...