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Message
Anyone here constructed a rent to own agreement?
Posted on 6/5/24 at 11:58 am
Posted on 6/5/24 at 11:58 am
I have a mobile home property I am trying to sell and a couple buyers are having issues with getting financing on a non-traditional home. I am thinking a rent to own could be a good option. But, I am unsure where to really build a contract. Anyone have any experience developing the critical numbers to make it work?
The home and land was apprasied for $150k and we have gotten multiple full price offers but twice they failed to get financing. Not sure what other information is needed, but I was thinking a $15k down payment option could help a first time home buyer, but I am unsure how to structure it around that (hope this makes sense).
The home and land was apprasied for $150k and we have gotten multiple full price offers but twice they failed to get financing. Not sure what other information is needed, but I was thinking a $15k down payment option could help a first time home buyer, but I am unsure how to structure it around that (hope this makes sense).
7
Posted on 6/5/24 at 2:26 pm to rpg37
Almost did a rent to own on a flip house I had in 2020. Go to a title company and they can make the legal contract under your terms.
Posted on 6/5/24 at 2:29 pm to rpg37
You can set all of the terms.
% down, amoritization schedule, interest rate, balloon timeline(unlikely they can afford the balloon), escrow for property tax and insurance, late fees, etc.
Any basic real estate attorney can draft you up a simple mortgage and then you just file it at the courthouse. I've done it plenty of times for land and mobile homes.
Do some research in your state on the pros and cons between owner financing, lease to own, bond for deed, etc. Real estate attorney will be able to advise on that as well.
% down, amoritization schedule, interest rate, balloon timeline(unlikely they can afford the balloon), escrow for property tax and insurance, late fees, etc.
Any basic real estate attorney can draft you up a simple mortgage and then you just file it at the courthouse. I've done it plenty of times for land and mobile homes.
Do some research in your state on the pros and cons between owner financing, lease to own, bond for deed, etc. Real estate attorney will be able to advise on that as well.
Posted on 6/5/24 at 2:44 pm to southside
This description is different than a lease purchase.
I've written several up. But my suggestion would be to go to a real estate attorney and speak candidly.
There is a lease purchase (rent to own) and land contract (you are the mortgage company).
Legally very different. It is the difference in an eviction and foreclosure.
If you are done trying to get a quick sale, I suggest you schedule the appointment with an attorney to get pros and cons and a well structured contract (you make all of the terms so they should absolutely be in your favor)
I've written several up. But my suggestion would be to go to a real estate attorney and speak candidly.
There is a lease purchase (rent to own) and land contract (you are the mortgage company).
Legally very different. It is the difference in an eviction and foreclosure.
If you are done trying to get a quick sale, I suggest you schedule the appointment with an attorney to get pros and cons and a well structured contract (you make all of the terms so they should absolutely be in your favor)
Posted on 6/5/24 at 4:25 pm to rpg37
set the terms you want and use chatgpt. very easy
Posted on 6/6/24 at 10:59 am to rpg37
Get an attorney to draw up a promissory note agreement that lays out the terms, payment due, interest, and what happens if payment isn’t made.
You would hold the deed until the principal is paid off
You would hold the deed until the principal is paid off
Posted on 6/9/24 at 6:33 pm to rpg37
(no message)
This post was edited on 10/24/24 at 9:24 pm
Posted on 6/11/24 at 5:11 pm to rpg37
quote:
I have a mobile home property I am trying to sell and a couple buyers are having issues with getting financing on a non-traditional home. I am thinking a rent to own could be a good option. But, I am unsure where to really build a contract. Anyone have any experience developing the critical numbers to make it work?
How flexible are your morals? How good are you at not giving a shite and foreclosing on someone?
A rent to own on a mobile home that someone can't get financing on is damn near a slam dunk to end up as a foreclosure for you. There's a very good chance you will have to end up evicting them or otherwise with them ending up in poor financial terms with you.
I'm not suggesting don't do it, many people do these on lower end properties like mobile homes as its similar to a long term lease but where your buyer is responsible for all repairs because they are the "owner". Its easier to manage until they stop paying.
I'm simply making sure you know you have to be like 90% prepared to evict or use whatever terms are legally correct for the agreement you draw up and leave them on their arse without any equity because you keep everything.
There's a lot of people that would have a hard time doing that emotionally.
Posted on 6/11/24 at 6:26 pm to rpg37
I did one about 15 years ago for 2 years.
Pretty basic with an incentive for the future buyer to pay on time, I gave them 5% of the agreed purchase price at closing if there were no late payments on the lease.
Title company drew up the contract.
Pretty basic with an incentive for the future buyer to pay on time, I gave them 5% of the agreed purchase price at closing if there were no late payments on the lease.
Title company drew up the contract.
Posted on 6/12/24 at 4:14 am to baldona
This
Posted on 6/12/24 at 2:08 pm to baldona
quote:
How flexible are your morals? How good are you at not giving a shite and foreclosing on someone?
A rent to own on a mobile home that someone can't get financing on is damn near a slam dunk to end up as a foreclosure for you. There's a very good chance you will have to end up evicting them or otherwise with them ending up in poor financial terms with you.
I'm not suggesting don't do it, many people do these on lower end properties like mobile homes as its similar to a long term lease but where your buyer is responsible for all repairs because they are the "owner". Its easier to manage until they stop paying.
I'm simply making sure you know you have to be like 90% prepared to evict or use whatever terms are legally correct for the agreement you draw up and leave them on their arse without any equity because you keep everything.
There's a lot of people that would have a hard time doing that emotionally.
I have had to do one eviction before on a rental property, but I definitely understand the added gravity for this kind of situation. I don't have much stomach for non-sense and I am a by the book person.Hopefully it wouldn't come to that, but I could handle that part if it did.
Posted on 6/12/24 at 6:00 pm to baldona
(no message)
This post was edited on 6/17/24 at 3:06 pm
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