Posted by Bill Gatten on January 09, 2001 at 11:28:34:
I would certainly allow at least a partial credit for it and for the amount the tenant is paying over and above fair market rent as well (only fair isn’t it?). Inflating the price of the house a bit to absorb it will make the tenant happy (assuming you haven’t inflated the price after they agreed on the deal). You just want to be sure that you don’t go above a fair (albeit on the high side of fair) comp value in your pricing.
And no, it’s not hard to get. These people are trying to figure out a way to own property without having to come up with a 20% down. Five or six percent is a dream-come-true when they don’t have to qualify for a loan right away.
In my case, because I use the PACTrust almost exclusively, I can also offer them tax benefits, and cut myself in for 50% of the future appreciation as well, and ‘still’ not have any trouble getting the up front money.