Re: lease/purchase confusion - Posted by Brent_IL
Posted by Brent_IL on August 29, 2003 at 20:42:31:
Am I getting this right that you want to purchase a property and then offer a L/O to a third party?
If I were to do this, I’d buy the property subject-to the mortgage at a purchase price equal to the mortgage balance + $1,000. I’d give the seller a down payment of $1,000. I would sell the property to a R/B via a PACTrust arrangement. In my mind, it’s a cleaner deal and less likely to be problematic because of rent credits, et al.
When you sell, you receive a note on which payments are being made. You most definitely should be charging interest. The trash, etc. is the responsibility of the one designated in the lease part of the L/O, most likely the tenant. This has nothing to do with credits or pay-downs.