All Forum Posts by: Bill B.

21-24 month lease, so it ends in spring, not winter:

“Assuming ZERO late payments or lease violations the rent will be reduced $100 (or 5%, whichever is lower.) for the last 6 months of the lease.”

That’s a 1% discount for a “good tenant” I assume you would accept 1% less for zero late payments and violations. 

You’d have $30k tied up to make $2,400/yr almost 8% even if the land never appreciates. And then you triple your money eventually. As long as there was an agreement that rent would go up enough to cover insurance and property tax increases I think I would be ok with this. Again, assuming they are responsible for all repairs/maintenance. You don’t want to be on the hook for a $10k roof or HVAC, or BOTH. Get a real lease saying all this. 

Ps. Have a plan incase he outlives you. 

Pps. You could reach out to @Jay Hinrichs. I’m pretty sure he talked about doing a deal like this in the past. 

If you can’t make a go of it Chris I don’t see anyone else having any luck. 

Could you offer the current note holder $1 plus 1/2 the sales proceeds if you’re able to take ownership? It seems like the current note holder has obviously given up and anything should be better than nothing. That way you’re risk free. 

Maybe they wouldn’t go for that but maybe you could offer 70% if you’ve only got $1 in to it. 

To the best of my knowledge, and with TurboTax’s backup…

The taxability as short-term or long-term gain is based on the purchase and sales dates of the property not when you receive the proceeds.  
  . 
I’d really try to wait until a year has passed, the savings could be huge. Depending on the taxable gain you’re talking about. Rent it to them for the time difference and give them an option to purchase at the agreed upon price amount minus a portion of the rent?

You sure got lucky he took a credit card. That SHOULD be a win for you. I use a credit card whenever I possible. 

What’s the restriction for?

if I was a lawyer I would argue it says at the end of the 25 year period it would be extended for “A” successive period of 10 years. 
 
I read that as going out of its way to say. Specifically ONE extension after the specific 25 year period. It doesn’t say anything about the end of the 10 year period. 
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ps. I wonder why they didn’t just do a 35 year period. Either that wasn’t legal or there was a way to void it between the 25 and 10 year periods?

Ps. Please don’t say my offer was X and now I need new windows and roof (That I could see when I made my offer.) so now I want the same house with new windows and roof for the same price. 

Could they get $5-10k more if they listed it with a new roof? (I’d never replace non-leaking windows, just like you wouldn’t on your personal home.) 

Try getting an inspection on the home you’re living in right now and then tell me how many of those things you fix within a month or a year. 

If you don’t want the house use the list as a reason. If you want the house that list won’t stop you. 

That was kind of my point. It sure SEEMS like you could lose everything. Or more than everything if you’re required to return the land as-was. 

My only experience was a friend asking for a loan to “buy” and aircraft hanger on government land with only 20 years left. Even though the loan would have only been 10 years. I asked him his plan if they decided to expand the airport and tear down his hanger in 20 years. He didn’t have an answer and the government wouldn’t promise not to do it. So he walked. Or really, just remained a renter from the owner. 

@Dan M.. She needs a non-recourse loan because she's buying it with her IRA. If the loan had recourse she would be providing an asset/service to her IRA (her credit and guarantee.). That's not allowed. The same thing if she mowed the lawn (for free or for charge), stayed in a unit. Painted a room, etc etc.

I THINK supplemental heating is an option but that might be only on whole house heat pumps?  you’re probably going to need it or people are going to move out when winter hits. 

Check with local power company for incentives? They’re always shopping for new “lifelong” customers.