I am currently negotiating with a tenant who is interested in buying my house using a rent to own plan. We have most of the details worked out, but I was wondering if anyone is experienced in this area, and can offer some advice on structuring the deal, or any pitfalls I may encounter.
What specifically do you need help with the lease? the option agreement? what to charge what the buyout is? Amount of deposit? deposit amount vs rent amount?
leave a message on here or email me and I will see if we can help you out.
QUOTE (dshake @ Mar 17 2008, 05:27 PM) I am currently negotiating with a tenant who is interested in buying my house using a rent to own plan. We have most of the details worked out, but I was wondering if anyone is experienced in this area, and can offer some advice on structuring the deal, or any pitfalls I may encounter.
Hi Mark. Thanks for responding. I am a bit concerned because the tenant does not wish to put down any sort of a down payment. As well, I don`t really know how to decide on the purchase price, particularly in a housing market which may actually decrease.
Have a look through my blog with particular focus on the "tenant" category and you can key word search on `what can go wrong`. I have a fair amount of detail on that as well as on how we structure things. Feel free to send me an e-mail if you would like me to review the structure that you come up with - or if you have any questions that I may be able to answer...
The problem with no money down is there is no incentive for the prospective tenant to purchase. As for the purchase price if you have a good realtor in Edmonton he can give you something to work off.
Everything is negotiable. If he doesn`t want to do a DP maybe you have higher monthly rents with more going towards his DP at the end. The Goal should be to sell the house within 3 years. Have you looked at their credit? Income? Can they even afford this house in 3 years?
There are many variables. If you want to sell the property now with a Lease to Own tenant in there I have a long list of buyers.
QUOTE (markl @ Mar 18 2008, 08:41 AM) The problem with no money down is there is no incentive for the prospective tenant to purchase. As for the purchase price if you have a good realtor in Edmonton he can give you something to work off.
Everything is negotiable. If he doesn`t want to do a DP maybe you have higher monthly rents with more going towards his DP at the end. The Goal should be to sell the house within 3 years. Have you looked at their credit? Income? Can they even afford this house in 3 years?
There are many variables. If you want to sell the property now with a Lease to Own tenant in there I have a long list of buyers.
Regards,
Thank you Mark. Actually, I looked at your website when I was considering this deal with my tenant, and it gave me a lot of the information that I needed to start negotiating. Now I think I`m at the point where I need to consult my lawyer to start drawing up some contracts.
