What should I watch for on this deal? - Posted by Steve in Alaska
Posted by Steve in Alaska on December 28, 2000 at 16:29:29:
We’ve got the house lined up (6.5 acres, very unfinished, large shop, $69,900), and we’ve got somebody who will work with us on helping us to get it (we’ve got wretched credit currently), and I’m here looking for advice on how to structure the deal so that nobody gets hurt.
The fellow that is helping us has offered to just purchase the house for us and sell it to us on a contract for deed. Nice guy, huh? Originally, I had looked for someone to co-sign us, or help with the down in exchange for a profit when I refinanced it after the work was done to it.
What pitfalls should I look for in setting up the contract for deed? It’s not something that is commonly done in Alaska (according to our agent), and I’m unfamiliar with what to look for. Can we avoid the due on sale problem? Who gets the tax advantages? How do I guarantee that we actually own the house when all is said and done?
I appreciate any help!