Seller financing options

Member since 2022 · 59 posts · 11 votes

Seller Financing

I am the buyer with 30 days to purchase the property and want to simultaneously market it as rent-to-own, how can I structure the process effectively:

Can I structure the deal this way, so I can secure a tenant-buyer while working to close on the home myself, minimizing my risk and creating a win-win situation.

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Tom S.

Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes

@Cheryl J McGrath Personally I don't see why any RTO buyer would enter into an agreement and put down money if you don't own the house yet. If the R2O buyer gives notice on their current place and your deal falls through at the last minute, those tenants would be scrambling to look for a place to live.

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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
1y
Why? Why not just buy it then list it as R2O?
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Cheryl J McGrath
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Member since 2022 · 59 posts · 11 votes
1y
I want to use RTO person for the down payment. They pay me down payment and I pay seller
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Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
1y
@Cheryl J McGrath Personally I don't see why any RTO buyer would enter into an agreement and put down money if you don't own the house yet. If the R2O buyer gives notice on their current place and your deal falls through at the last minute, those tenants would be scrambling to look for a place to live.
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Andrew SlezakPro Member
Rental Property Investor · Gadsden, AL · Member since 2019 · 22 posts · 8 votes
1y
Quote from @Tom S.:

@Cheryl J McGrath Personally I don't see why any RTO buyer would enter into an agreement and put down money if you don't own the house yet. If the R2O buyer gives notice on their current place and your deal falls through at the last minute, those tenants would be scrambling to look for a place to live.

I second this, not a good luck to just rush something through. Patience is a virtue.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
1y
I don't know your state but I suspect you would be breaking some law, as you are likely unable to legally market something you don't own or have use and possession rights. Why do you need the RTO money for the down payment? If you are broke as a joke, you should not be investing in RE. There are lots of things that can go wrong for which you should have reserves. If you're not broke as a joke and just want to do it to do it, you shouldn't do it as there's lots of things that can go wrong and lots of reasons why houses never end up closing.
What would you do if you got someone to do it, gave the money they gave you to the seller as his/her earnest money, and the closing fell apart but the seller refused to return the money or tied it up in escrow or arbitration? Tell the RTO people they're SOL and you'll get some money to them when you get it back?
Just a bad idea all the way around. You don't do anything until you own the property.
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Cheryl J McGrath
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Member since 2022 · 59 posts · 11 votes
1y
I understand, just a thought. Thanks to all
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