Suck it

I have done something similar. "wrap around mortgage" with 2-3 years of payments and then a ballon payment at the end. Worked out well for both of us as it allowed the "renter" to obtain enough credit to qualify for a conventional mortgage. They signed a quit claim deed at closing of the original contract allowing me to easily take the property if they missed a single payment. They were late on 2 payments during the 3 year period but for good reason. It all worked out to both of our advantages in the end. The property was on an undesirable shaped and positioned lot and I had a hard time selling at first. There aren't to many realestate agents that know much about this but some do specialize in this type of contract. By the way, I live in Florida and the laws may differ between states.

You need to realize that the only reason to do this is so you can make MORE money then renting it to them and because they have no other means. It makes 0 sense for you to Owner Finance to someone that can get a loan from a bank, because the bank will likely be cheaper to loan from. You should be doing this for 6-10%.

You need to be ready to kick them out and take all of their equity in the home if they miss a payment or 2, all of rights will be on your side.

The main benefits to doing this for you is you make more and the general thought is that someone that is working on purchasing a property will take better care of it then if it was just a rental. Some people also owner finance and the tenant has to take care of their own maintenance, so its easier for the owner.

ETA: The other reason is to save realtor costs by not selling it on the open market. But the buyer should know this also and if they have any brains which is unlikely should offer you a lower price.

It's a moveable, on a lot. It would probably be upwards of 12%, and I can't see a bank loaning it to them for any lower than that.

They've rented and have not missed a payment in 6 years. It was the first time I'd ever heard the tenant mention wanting to purchase. And with the age of the moveable, and the appeal of no longer having to maintain, intrigued me to consider actually selling.

There are plenty of mortgage lawyers who already have these type of contracta written. I did one 3 years ago. I think the total costs were about $1200.00.