Questions On L/O & CFD To Be Used For My Property....
I have a conv. mortgage on a property that I wish to sell. My wife and I are trying to figure out the best method to use. I am fairly new to the CREI side of real estate. We live in Texas. There is no equity in this deal (maybe small amount if we push purchase price to upper limit of the comps say $10-15K).
DOS clause is a concern, albiet one that we can possibly live with.
Our wants -
as much down as possible
payments slightly above our mortgage pmt
T/B to get thier own financing ASAP (so we can get the mortgage off our back)
Questions-
With L/O:
Our down/option is lower. Payment structure is lower unless we allow rent credit and add that on top of the base rent. We retain ownership. DOS is less of an issue unless the Lease period is long, then it looks like a sale.
When the T/B exercises the option, is it a refi or new buy for them? If we go with a non-qual T/B that can make the payments how do they qualify in 12-18 months?
With CFD:
We can get more money up front in a downpayment. We are actually acting as a bank. We retain deed until the terms of the contract are met. Higher payments.
A loan recall is possible b/c we sold the property, but not likely if we follow the procedures (i.e. John Locke), correct? It seems to me that the buyer is more likely to qualify for a loan in 12-18 mos b/c it is going to be treated as a refi, correct? Clossing costs are going to be lower and the buyer will be paying for those anyway.
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Sorry for the long post. I am trying to figure out the details in my head. I think CFD is the way to go. I do know about the recent Tx laws that have changed regarding CFDs. We will make sure to follow the new statutes.
Thanks to all in advance.
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