Installment Sale
Here's the deal.. We have rehab that we were planning on renting out, but while working on the house on Saturday, someone stopped by and loved it. They called wife, daughter..everyone loved it and he wants to buy it. He offered $80,000 (appraised for $77,500) and he wants to pay $45,000 cash and the balance in 6 months. He recieved a settlement and he is paid in installments is why he wants it like this. We do not have a mortgage on the house so there is no issue with the bank. My question is how does this deal need to be structured? Like a land contract?? I do plan on calling a real estate attorney today, but I just wanted a few opinions so I would be a little educated on the subject before I called.
Any advice is greatly appreciated.
Thanks.
Heather,
Congratulations! You are in a great position. Either a land contract, or a lease option will work. Probably with the 45K, I would lean toward the land contract, but let your attorney help you decide which will work better for you. I like lease options because in the case of a default, you simply evict. But in some states, the wording can be a little tricky. The land contract would require a foreclosure, but I know some who do them in conjunction with a confessed judgement which makes the process a little easier.