Posted by Mike Daly on March 11, 2002 at 07:10:19:
I’ve found the most effective way to find a T/B is to use signs – lots of them. Put 3 signs on the property itself, a sign at each entrance to the subdivision, and signs at the closest major intersections. Someone should be able to just follow the signs to your house. Advertise it as “Lease Purchase” or “Owner Will Finance”. Of course, you also want to advertise in the newspaper – I’ve just found I get more calls off the signs than the paper.
Your best insurance against T/B trashing the place is to get as large a deposit as possible, and make it clear that maintaining the property in good condition is a requirement of the lease agreement. If the T/B really wants to buy the place down the road they will take of it. Of course, do a background check on them to make sure they don’t have prior evictions.
For forms, try legalwiz.com or uslegalforms.com. And yes, you want the option separate from the lease agreement. If you have to evict them and they take you to court, this makes it harder for them to make the case that they had an interest in the property if they lose their paperwork, which most of them do.
Ok. Ok. You guys win! You’ve made a believer out of me. I want to try to L/O my house rather than let a rental agency just rent it out.
Here’s my situation:
I’m in TX and have a house I owe $173K on, just refinanced and first note is $1565/ month (PITI). No second. It’ll probably appraise at $165 because they’re still building similar houses a few subdivisions away so I’ve got to hold it for a year or two. The reason I’m in so deep is it’s the model home for the neighborhood and we’ve only lived in it two years. It’s got upgraded everything, hardwoods, ceramic counters, Jacuzzi tubs, inground sprinklers, etc… and is in the best school district around. Therefore, it’s a desirable property so you’d figure I should be able to find a T/B easily, the only problem is I don’t know how to find them at all.
I’m moving to KY in a few months so how do I locate a T/B and get some kind of warm fuzzy that they won’t trash the joint. Also, where do I get a format for the paperwork. (Preferably one I can get digitally and then cut and paste in appropriate clauses and details.) I understand that there should be two contracts: One for the lease, and one for the option. Is this right?
Thanks for all the help you folks have already provided, You’ve been wonderful!