Whatever works. This is not your sole decision as you will need to LO with the seller and agree on a time period as well as with your TB, who needs to have a hope of being able to qualify at the end of the term. Usually 1 or 2 years works best, but you need to make sure your term with your TB is up before your term with your seller so if your TB can close, you have time to notify your seller that you are excercising your option to purchase and close!
Posted by Randy M on January 10, 2001 at 18:05:27:
That depends a lot on your seller. Ron Legrand taught me to ask this question when I found out the seller was really anxious to have someone take over his “problem.” Here it is - ready?
“Just how long do you want me to make your payments for you?”
Now, this doesn’t work every time, but let me give you an example of what happens when you ask this question. I am an inexperienced newbie, by the way.
I am living in a beautiful upgraded 4br 3ba house in the pines in the Black Hills of South Dakota. I asked that question and ended up getting this place on a one-year lease with the right to renew for fifteen consecutive years. I have a one-year option with the right to renew for fifteen consecutive years. When I close, it is for the loan balance. I have the right to put in a tenant, subject only to notifying the seller. In all, I could move this house within the next week for about a $40,000 profit minimum and just walk away.
Until I started asking the question, I never in my wildest dreams thought someone would give a nice house away under this type of situation. But they do!
The best answer to your question is - AS LONG AS POSSIBLE!