Lease Option Vs Land Contract
I want to sell my existing primary residence. Since I bought it less than 2 years ago, using realtor is not financially viable. That leaves me with two options (I think!):
1. Rent it with option to purchase.
2. Sell it on land contract.
Since I am new to these terms, I will really appreciate if some one can explain pros and cons of both options.
Where are you located?
Also, I would think that you might have the option of selling the property yourself, thus saving a little money on the transaction.
Are you upside down on the property?
If you would like, look at my profile and email me.
Good luck
Derek
Quote:
On 2003-08-01 00:23, webuyproperties wrote:
Where are you located?
Also, I would think that you might have the option of selling the property yourself, thus saving a little money on the transaction.
Are you upside down on the property?
If you would like, look at my profile and email me.
Good luck
Derek
I am in Michigan.
What do you mean upside down? If you asking aboyt LTV, I have roughly 10% equity.
naqviak,
If I were YOU.....
I would L/O my property...
L/O...you have an......EVICTION!
....easy out!
LandContract...you have a.....FORECLOSURE
....which would YOU want to pay for??
....as always,
GoodInvesting, Rocky[ Edited by 2000rock on Date 08/04/2003 ]
Naqvial, 2000 rock is right there is not much protection on your part . How about this though, get all the protection of a trust but you can disolve the agreement through an eviction.If you want to find out
how to do this e-mail me I will give you the info. And yes It's legal!
I agree with Rocky, I would l/o property. What city in Michigan are you in. I have a couple of relatives that are looking for l/o deals to live in.
Prosperous investing,
td
I'm gonna argue, just cause I'm in the mood. True, with a land contract, you have to foreclose. That's if they are the nightmare type that take it that far. It has been my experience that L/O is glorified landlording in that no matter what, you run the risk of landlord headaches. don't get me wrong but landlording ain't for everyone. With a L/C they own it although the deed is in my name. I can sell the L/C for cash, I get extra Interest each year, and for the most part, the buyer, if they get in trouble, will just decide to rent it again or walk away. Either way, they are just about the same, it depends on the downpayment and the quality of the buyer.
[addsig]
Exactly, loanwizard...it all depends on the down payment. If you get enough and get the property back, OK! Sell it again!
As far as using a REALTOR with a lease option, you will find some that are willing to wait for their commission. Especially if there is a balloon involved in a short amount of time. Also depends on the working relationship with the client.
I would recommend the L/O just make it short term 12 - 18 months.
[addsig]
Land contract may be better...
1) Lease options (3-5%) get less down payment than land contracts (up to 10%)
2) In your state you may not be able to transfer all maintenance responsiblities to the t/b, that is a bummer...
bginvestor