Land contract or Lease option???? - Posted by Joe

Posted by Terry GA on April 26, 2002 at 21:27:19:

If you are going to offer Non Market financing then you need to get a non market sales price… I have heard noting but bad stories from investors who have delt with anyone who has filed for chapeter 13 or 7. I have been told to stay away from them. BUT, You may put in your contract a 5 or 6 year call, or a Bankruptcy exclusion. Just for your deal. I do not know if this will work But, what if?
You could do a Lease Option that is amertized just like a mortgage and give them a equity deed.
Terry GA

Land contract or Lease option??? - Posted by Joe

Posted by Joe on April 25, 2002 at 10:24:05:

I have a two family house that I am considering selling. It is fully rented for $1075 per month. I have a $44,000 mortgage and it was recently appraised at $60,000. One of my tenants is interested in buying; however, his credit is not good enough to qualify for a mortgage. He filed for bankruptcy one year ago and has been working to repair his credit. He is trying to seek other sources of financing. If this does not work I am considering owner-financing. I have researched both land contracts and lease options. They both seem to have their pros and cons. In my situation what would be the most beneficial way to do this, both for myself and the tenant??? Any suggestions would be greatly appreciated.