All Forum Posts by: Troy Michaels

Ok, this is whats happening. I got a owner to agree to owner finance a property, in which i want to immediately rent out to a section 8 tenant. Everything was going smooth, we agreed on a 110,000 sell price with 10,000 down. the 10,000 would be split up into payments, with a balloon due in 12 months for the balance. so far so good. the problem is two fold: he wants me to RENT the property from him, and add a OPTION to purchase contract with it which explains the 10,000 balance. in essence, TWO seperate agreements.the rental contract doesnt even give me the right to sublet. to further compound the deal, a option to purchase doesnt give me ownership rights. now, why cant we just do a simple land contract? the deed will STILL be held in trust, the option to purchase route is too fishy. they could get my 10,000, and find a fault in the option language (which makes the rental agreement a part of the deal, and remember,the rental agreement will not let me sublet, but they KNOW thats what i wanna do. its CRAZY. i dont wanna walk from this deal, but im not backing away from the land contract either.

ok. this what we are negotiating : 120000 asking price , amortized 30 years owner finance with 10000 down. 4000 of down payment will be spread out over the first 12 months and included in the payments or held as a separate note. the remaining 6000 will be due in 12 months as a ballon. ok, section 8 will technically be making my down payment so its still no money out my pocket . this all contigent on the seller getting a waiver on the due on sale clause . how does this all sound? i start some cashflow on the second year of this deal.

another problem in this case, in order to do section 8 , the housing authority wants proof of ownership and insurance . a lease option wouldnt work in this scenario?

i researched master lease . how can this work with a single family home? would i lease the house with a option to buy, then sublease the home ? would there be language in the master lease of the single family home giving me that right?

i want the right to rent the house ,either with or without transfer of title . thats the immediate goal.

no. this is not a subject to deal . the owner wants to owner finance the whole deal ,the 40000 up front was asked by the seller as a means of clearing his note so that he could carry a free and clear note without having to worry about the due on sale clause . i want to gain control so that i can rent the house out to a section 8 tenant . if there is a way of gaining control without a complete transfer of title , i would still do the deal.

120000 asking price with 40000 down is what seller wants. the 40000 is the payoff on owner note with his bank . ok, how can i work this so that the seller will do the deal without me paying off his note ? he only wanted tthe 40000 down because he is afraid of the due on sale clause on his note . otherwise , he will carry a owner finance deal with me.

ok, we are clear. a c corp is what i need to do.