Land Contract in Minneapols
I was reading a thread here a few day's ago, can't find it now, but a person was snatching up a pile of rentals with Land Contracts. Inspired, I'd like to make my first attempt and would love some advice.
I live in one of the prime neighborhoods in the very hot rental market of Minneapolis. Two doors down from my house is a beautiful brick 4plex. The woman who owns it is in her mid 70's and inherited the property from her father. It's been in the family a long time and is immaculately kept up. Absolutly NO Menards grade "updates" in this gem. I've heard her mention over the last few years that she's interested in selling but doesn't want the big tax hit. I also think she would like it to belong to someone that respects it's history and will maintain it with the same attention that she and her father before her have.
With my new knowledge of Land Contracts..Thank you Bigger Pockets! I would like to make her an offer akin to what I've been reading about here. A five year owner financed deal with a balloon payment of the balance at the end of year five. I'm assuming that the interest rate that I offer her should be based more on expected appreciation in the neighborhood than standard commercial interest rates since this property is paid for and she isn't paying or making anything on interest at this time. Is that accurate?
I hope to move on this soon and would greatly appreciate any advice I can get. I know this woman owns a few rentals in Minneapolis and if I can get this to work I'd love to see what else I might be able to work with her. I also know of a woman in her 80's that owns some 10 and 12 unit buildings in the area that are equally well maintained. Opportunity abounds!