Author Topic: Selling a property and buying it back over time  (Read 1258 times)

tibberous

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Selling a property and buying it back over time
« on: May 12, 2016, 08:24:17 PM »
First off, let me say Hello to everyone - I have been looking for a board like this for forever!

I was reading Wikipedia, and when Lloyd's of London got into financial trouble, one of the things it did was sell its building, then buy its building back from investors over a period of years.

So basically, here is what I'm thinking:

- I take my $50,000 building, and sell it for like $25,000, with the condition I can 'rent-to-own' it
- I'd pay like $1000 a month for 36 months, plus taxes, closing costs, ect. So an investor would make like $11,000 off a $25,000 investment in 3 years, and be super well protected

Does this sound like a win-win?

Is there anything I need to be careful of? I guess my biggest fear is the building could somehow get taken - either maliciously, or if the 'owner' died / went backrupt / ect. I'm hoping the 3 year term would prevent anything too crazy from happening, but I'll probably have an attorney do the contract.

« Last Edit: May 13, 2016, 04:05:00 PM by tibberous »

chesebert

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Re: Selling a property and buying it back over time
« Reply #1 on: May 13, 2016, 03:06:11 PM »
Talk to a bankruptcy lawyer before you execute the transaction. Your idea may not work.

Drifterrider

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Re: Selling a property and buying it back over time
« Reply #2 on: May 14, 2016, 03:27:08 PM »
What would be the reason for this?  If you want money, take a mortgage against what you alread own. 

bobechs

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Re: Selling a property and buying it back over time
« Reply #3 on: May 14, 2016, 03:35:50 PM »
Is there any reason for starting this same subject over in a new thread?

http://forum.mrmoneymustache.com/ask-a-mustachian/rent-to-own-deal-23-interest-lt50-ltv-make-11k-off-25k-in-3-years!-%28pa%29/msg1086259/#msg1086259

Other than the kinda rough treatment you were getting in that discussion I mean...

edit:  My bad; same day, different (earlier) hour.  Anyway, my redirection to the other thread of identical import stands.
« Last Edit: May 14, 2016, 03:43:41 PM by bobechs »