All Forum Posts by: Austin Largusa

I’m looking for the best way to offer owner financing on Land.  Most land investors use the Land contract/contract for deed and many tell their buyers they will not be recording the contract nor the deed until the property is paid off.  Makes it much easier to take the property back under default.

I’ve also got an idea to do this with a delayed option and a leases, but I’ve never seen the idea mentioned and so far I’ve been unable to figure out if it gets past Dodd frank.

Here’s how I would work that.  I would take their down payment and make that the “option fee”.  I would then take the rest of the payments and make that the “lease”.

When you add up the option fee and the lease payments, I get the price (plus interest) if what I wanted for the property.  However, I can’t have them exercising the option until all the lease payments are made.  I thought I could make the option not exercisable until the lease term is complete.   Seems to work and get past Dodd frank.

If they stop paying I do a simple eviction.



I thought I could Also modify this by having multiple 1 year lease options with each successive one subtracting what was paid on the previous one.More work but similar idea.

thoughts?

@Austin Largusa  So true.  Perhaps today's "idiot" is tomorrow's genius 

My first property was by accident also. I decided to rent my house out instead of selling it when I moved. This property is not in the San Francisco Bay Area but in the Midwest. My purchase price was such a good value for a low interest rate and it appreciated quite a bit especially over the last two years since single family homes were in high demand - I was tempted to sell it to realtors with buyers lined up but decided to keep it. 

I had just replaced the AC/Furnace unit before I moved and the water heater was about 3 years old so my renters are enjoying the AC/furnace more than I did lol. It's cash flowing and I've acquired two more properties since then.