A friend of mine wants to sell his paid off home and lot to me on a $500 a month for 15 year plan, no intrest just stright cash sale over time. How does this work with state/county/other bull****. If I can find the proper legal documents is a lawyer even nessasay? Any suggestions would be greatly appretiated. It is a done deal we just have to figure out the paperwork.
Rent to own, hows closing work?
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firstchevelle
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Most mortages have a clause where the carrier can demand full payment at any time, usually for a delquint payment, but not limited to this condition. If he passes, there will be probate (a difficult and seemingly never ending and expensive fight), which the heir can demand full payment, this is usually done through getting a mortage through another carrier. Being you decided not to have credit, this would limit you greatly.I just cannot understand how his daughter or wife could call the full note on a lease to own property with the remainder due upon his death. That seems to defy the principles of having a contract. I would presume that his beneficiary would inherit the remainder owed on the lease at the rate of the lease. I am going to speak with the lawyer drawing up the documents next week with him, but it about sounds like I need to take all docs to another lawyer. Kinda makes me laugh, if I go to our families lawyer I only have to walk across the hall to the owner of the firm
Look we are all talking worse case scenarios, because real estate usually falls to that level and you have to be prepared. The good thing is the payment is cheap, so you wouldn't lose anything more than what rent would cost.
We're not saying nothing like this has ever been successful, but it's very rare. Here's something to think about. You buy a home from me, you pay fourteen years and ten months on time, and you miss a payment, I call in the note, you haven't any credit. Now obviously a couple grand most of us can come up with, but what if you can't?
I would still talk to a bank, you might be surprised that you have credit. Unless we aren't getting the whole story, you've paid utility bills etc. which does create some credit. If this is such a great deal, the bank might just give you a loan.
I don't know what principle you're trying to prove here...$ makes the world turn, and credit is not a sin, abusing that credit is. Credit has helped me gain much more wealth than I would have been able to amass without it. Most rich people use credit to get what they have, it's a tool for good, that sheeple abuse it, is why it has a bad rap.
The whole reason to have credit is, when oppritunities arise, you are prepared to take advantage and further your wealth.
I hope this all works out for you, be sure of the property tax percentage in your area. Is there school taxes? Is the property up to code? Are the comps in the area equal with your purchase price? Who has the property rights, you or the county? There is a reason for escrow....
Good luck, I hope it all turns out for the best...
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At this point in my life I feel like I have done very well without borrowing from anyone for anything. Everything I own is paid off cash and I have all the toys I could wish for. It has worked well for me and I do not plan to change this way of life. This is a great leap of faith for me, but no more then a mortgage would be. Good deal to me and him, not a good deal involving a bank and the interest I would pay on the 100k. The profit is built into the price.
They won't do that. It's a conflict of interest. You'll have to go to another firm.but it about sounds like I need to take all docs to another lawyer. Kinda makes me laugh, if I go to our families lawyer I only have to walk across the hall to the owner of the firm
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I was thinking that was a possibility but I was under the impression that since we have a retainer through them with our buisness we would be able to get around that. Theres always plan B, take the clerk of courts a bottle of burbon and have him look it over
I love small towns.
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Thanks for bringing up these points, helped me to further my research.
In georgia Sec 10-1-686 states that you must be in default for 3 months and notified that the lessor wants you to surender the property after 1 month behind. All you do is catchup the note and you are back on track after a fee of no more then $5 per missed payment as a late fee.
According to sec 10-1-687 if you willing violate any provision of this law you are only subject to a $500 fine, a misdemeanor and the lessee is entitled to file a counter claim for %25 of the total cost of the lease.
I don't know why I didn't call the clerk in the first place. Always is worth the bottle of bourbon.
Turns out he knows the guy and has nothing but good things to say about him, but wants to read whatever is drawn up before I sign anything.
Concur with the guidance, #1 get an attorney. #2 see rule #1. If the attorney suggests an accountant, get one. If you choose a realtor, and you may not need one, ensure you get the contract to state he is the buyers agent. Per the above, ensure the survey and deed are accurate, and with no quirks contestable by neighbors. Verify the elevation vs the local code flood elevation, and all the insurance requirements. Get flood if at all possible, like if it ever rains where the place is located. Just sayin'.
Have done some interesting real estate stuff in the last 10 year, buying and selling. Cash sale, etc, etc.
The major sticky point in this one is when does the title transfer, and how does it work 15 years down the road, etc.
Otherwise, probably a good way to go.
Have done some interesting real estate stuff in the last 10 year, buying and selling. Cash sale, etc, etc.
The major sticky point in this one is when does the title transfer, and how does it work 15 years down the road, etc.
Otherwise, probably a good way to go.
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