HELP: Exit Strategy

[Brie Schmidt]

This is from a client and I don't know how to advise them to move froward:

We are moving out of the country and the financial return of keeping our property isn't great, and the time investment isn't worth the financial outcome. Selling it on the MLS would cause us to bring money to closing since we just bought it this summer.

I have an investor interested in taking over the building and has previously done a few seller financing deals, as the mortgage is not assumable. Here is a high-level outline of what it will look like. My goal is to regain as much as our investment to date and ideally break even (but likely be slightly under) and keep it a fair deal for both of us.

• Next 1 - 3 months, they will run the property entirely. Pay me to cover the mortgage payment and then keep any cash flow.
  • I will still be involved in a few building improvements and will check monthly for updates. I will be separated from the day-to-day.
• Next 6 - 18 months, when rates are good enough to not be underwater with the property, they get a loan and buy me out.

His lawyer is drafting a document, and I will have a real estate lawyer look at it. I've reached out to my CPA to go through the best strategy for the buyout. I am waiting for the mortgage lender to see if this process has any due at-sale issues that may activate during the holding period. I trust this person but want to ensure we have an excellent legal document for any disagreement.

Is there anything you would want to make sure we have laid out for a deal like this?