What about setting it up where this tenant signs a L/O agreement and puts the $2500 up in advance prior to you signing a purchase agreement? Have the agreement subject to you closing on the property. OR, enter into a purchase agreement with the seller “Subject to the Buyer finding a suitable tenant buyer”? Once you have the purchase agreement with the seller then close the deal with the tenant. Maybe you can set this up to where you close the sale and L/O with the tenant at the same time. If the tenant backs out, you can back out with your “Finding a suitable tenant/buyer” clause. Have tenant put the $2500 up to be held in an escrow account as a non-refundable deposit subject to you closing on the sale. If you close on the sale and the tenant backs out, you keep the $2500 deposit! That should cover any expense in getting the tenant out if needed.
Posted by d.henderson on May 25, 2000 at 10:24:14:
Hello All,
3/2 bath, brick, ch&a,storage building and patio, just clean up needed ( rented at this time) asking 42K (comparable to comps)offered 29K, owners live out of state.
Question:
The family that lives there have good rental history, good job employment, but credit is still a little shakey. He can qualify for a home worth 29K. He has talked to me before about finding him a home…rent to own…he has $2,500 to put down. He wants to stay in this house. Usually, I won’t buy until home is empty, what if I don’t put that in the contract and this guy doesn’t come through with L/Oing or owner financing the house from me? Would I have any problems with getting him out?
Any ideas what I could do that would protect me?
Thanks to All,
always learning,
Dee-Texas