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Updated over 5 years ago,
Selling RE with owner carry but retaining an equity position?
Hello,
Curious if anyone has sold a home with owner-financing and designed the deal to keep a portion of the ownership of the house along with the new home owners? I'm talking about staying on the title with them, and keeping a partial equity position in order to keep the home more affordable to them via a lower purchase price or smaller down payment.
I can definetly see this being of value of high price areas like Seattle or SF. I guess this would be a "residential partnership"
I'm talking about consumer end-users, not investors.
Overtly high-priced RE isn't a problem where I am, but I thought this might be a good way to share in the appreciation of the house while still selling (vs. renting) as a business model.
No landlord headaches (main argument against buy-and-hold) and no giving up of future appreciation potential and a portion of tax benefits (main argument against selling on terms).
I vacillate back and forth between buy & hold rentals vs flipping w/owner-finance; why not just do both...?
I also figure that if I am on the title with the buyers, I might have a stronger hand in court if they decide to quit paying. Maybe? Yes? No?
Any Dodd-Frank or other nanny-state nonsense legal land-mines to look out for here?
Thanks!