Land Contract to obtain financing only

[Redento. Johnson]

Hello Everyone,

 I have a buyer who wants my client to allow them to purchase a building on land contract. They want the land contract for the purposes of obtaining financing only. Has anyone used this form of creative financing to get a deal done.

Please advise. A little more information:

1. I am the real estate agent

2. My client owns the building

3. The buyer wants a land contract on the building for 60 days to acquire financing

4. They claim to have an investor lined up already (gave us a letter of intent from investor

5. My thoughts were, since you already have the investor, just do the purchase outright (we were told that it is easier to refinance then to get a new loan for a property.

6. The building was a senior care facility with 110,000 square feet.

Appreciate any input relevant to the question asked, thanks.

[Jeff Rabinowitz]

Does the buyer have any kind of commitment from a lender? How much of a down payment are they giving? Is it non-refundable? If the financing does not materialize the seller mar have to follow eviction procedures, possibly foreclosure procedures, depending on how much the buyer resists, to get the building back. If the down payment is enough to compensate for the potential legal bills and grief it may be worth going forward. If not, steer clear.