Posted by Tarun_MD on February 27, 2002 at 18:12:54:
In my opinion, it is definitely better to buy on a land contract as compared to a lease option. You have more control of the deal with a land contract.
I am just curious as to why you are not asking him for the deed?
Also, why are you agreeing to give him 10k upfront? Thats too much money to give to a seller on a lease otion deal or even on a land contract.
For me to get involved in a deal, I HAVE to make some money upfront.
Why not agree to give him more than 20k if he will only take 1k-2k upfront and the rest in a couple of years? You can always adjust your selling price with your tenant/buyers to compensate for the extra $$ that you agreed to give your seller.
If you do a one year lease option with your tenant/buyer, there is a good chance that they will not excercise at the end of the year. Just renew their option for one more year if they give you a few thousand more as option consideration. This will easily make up for the additional money that you might choose to give your seller for allowing you to get in light.
I just made 3k on a renewal where one year was up and I renewed their option for one more year for an additional 3k. I got 1500 ufront and am fiancing the other 1500.