Selling the house but keeping the land.... - Posted by Matthew Chan

Posted by Bill K. - FL on February 18, 2000 at 10:17:28:

This is true. It’s just nice to know all the options you have available to you. Someone on this site might know of a way to get third party financing on these types of deals in the event you want to cash out.

Selling the house but keeping the land… - Posted by Matthew Chan

Posted by Matthew Chan on February 17, 2000 at 20:51:56:

Has anyone sold a house and kept the land? If so, are there any issues that I need to be aware of regarding this transaction? I realize I will probably have to get my R.E. attorney to help in writing the deed.

And if you do sell the house without the land, is it typical to charge some time of rent just to solidify the fact that the land is NOT being sold with the house?

I know my request is a little out of the ordinary but why give up the land when you don’t have to? Heck, I would be willing to collect no rent for the land if I sold a house close to market value.

And if you keep the land, you keep the air and mineral rights, correct?

Re: Selling the house but keeping the land… - Posted by Jim

Posted by Jim on February 20, 2000 at 15:41:26:

This can be done no problem that I’m aware of. Many homes in my area are on leased land and lenders do finance them. There is acutal value in the leashold itself. However when the leaseholds are up the courts have usually interevened and made the lessors renew on favorable terms to the lesse. This may nor maynot be a factor depending on the length of your agreement.

Baltimore Groud Rents - Posted by SCook85

Posted by SCook85 on February 19, 2000 at 01:20:34:

A very large percentage of homes in Maryland, especially in the Baltimore area are sold this way. As Glenn mentioned they are referred to as Ground Rents. Typically a ground rent is $90-$180 per year. There are no guidelines to it. Lenders lend on these all the time. From what one of my attorneys told me, Missouri is another state that is big into Ground Rents. It can be done, I have created some ground rents myself and could send you copies of the docs that establish them if you would like. I don’t know if they will be legal where you live.

Happy Investing!

Steve

Baltimore Ground Rent - Posted by Glenn - PA

Posted by Glenn - PA on February 18, 2000 at 07:53:39:

Matthew - I used to own a fourplex in Baltimore which was a “ground rent” property. These are very common in Baltimore. You own the improvements but not the ground. I paid $160 per year “ground rent”. There are attorney’s in Baltimore who specialize in Ground Rents. They buy, sell and trade them just like any other note. They are perpetual and renew automatically as long as the ground rent is paid. You could probably find one of these attorney’s to advise you on the process. Every RE attorney may not be knowledgeable about ground rent properties (if they are not common in your area) but certainly a large number of Baltimore RE attorney’s and title companies will be. Glenn - PA

Re: Selling the house but keeping the land… - Posted by Bill K. - FL

Posted by Bill K. - FL on February 18, 2000 at 07:50:56:

What about financing? I doubt you will find a lender willing to finance just the house without the land. Anybody correct me if I am wrong.

Re: Selling the house but keeping the land… - Posted by David Alexander

Posted by David Alexander on February 17, 2000 at 21:55:16:

I think doug O posted something about this a few weeks ago. Type in his name on the search engine.

Something like you would have to give the people a 30 year lease, I believe.

David Alexander

Re: Selling the house but keeping the land… - Posted by Matthew Chan

Posted by Matthew Chan on February 18, 2000 at 09:24:28:

Once the property is in my possession, I can provide owner financing. I refuse to hindered by a lender’s policies. If the most successful people on this board (or in the world) is any example, most obstacles can be overcome with the proper knowledge, motivation, determination, creativity, etc.