OfflineI have a seller wanting to do owner financing for 5 years at 6%. Is it possible to agree to that then put a rent to own tenant in the home with my own owner financing? If so, what would you call this type of deal and what type of contracts and steps do I need to take. Thanks in advance
__________________
Hey,
It takes a lot more information in order to come up with a somewhat intelligent answer.
Thomas
If you were going to put a rent to own tenant/buyer in, you wouldn't need your own owner financing. What you charge for rent minus your payment to the seller would be your spread. You could sell it versus doing a lease option and generate your own financing with your buyer. That would be called a wrap around mortgage or All Inclusive Deed of Trust. You buy for $50,000 @ 6% and sell for $60,000 @ 8%. Just make sure your buyer's deal is up before your deal with the seller, so your buyer would refinance and be able to pay off your note with your seller before it is due. I am assuming it is a balloon due in 5 years rather than the house being paid off in 5 years. If the house is paid off after 5 years in your deal with the original seller, then you don't have to worry how long your wrap is structured for. Then you just take the whole payment after your initial deal with the seller is paid off.
Thanks TRSD!!!