Tenant Buyer wants Long Term Deal - Posted by Kevin
Posted by Kevin on March 21, 2006 at 17:26:58:
April 05 my tenant/buyers signed a 2-year lease agreement with an option to purchase the house at a price we agreed upon, with $300/month rent credits.
Now 1 year later, their credit score has actually gone down below 500, but they love the house and are asking me to do a long term lease situation still with a portion of the rent going towards the purchase price, while they bring their credit score up and get a loan to buy the house.
Does anyone have a suggestion on how I should best handle this? The t/b said he would agree to a 4% rent increase every other year and to adding 10k to the purchase price.
The t/b’s are great tenants and are always on time with rent, never have a complaint, etc.
I’d like to work out a win/win situation where I make more of a profit and he gets to buy the house within 5 years or so. Is there a better way for me to do owner financing than through a long term lease/option?
Thanks for any input!