Here's a condensed story leaving out many details of how I got into this deal, because it is a long story.
The contract is with the pastor of a church and used as a church property.
I will be seeing a lawyer in a week, but looking for any possible options.
I have about $142k into an almost vacant property. I sold it on a land contract with $30k down and less than interest only monthly payment. After 3 years I rewrote the contract I added all the accrued interest to the balance and bumped the payment up to an interest only contract for another 3 years.
The area had a hurricane 6 months ago, the church had spent money to do extensive repairs to a block structure that was standing on the property, but the hurricane destroyed it all. With no insurance!
Now the latest contract has expired, the buyer can not get a mortgage because the property value has declined, significantly. I haven't had an appraisal yet, but some where around $80k to $120k, maybe on the lower end. He is trying to get me to lower the $155k price that is in the contract. He has a vision for the property, but can't see over paying for it, and I don't blame him, although, if he had kept insurance up on his construction, we may not have any problem. He freely admits he still wants the property, but the price is now, just to high.
At this point he has said he will continue paying the same monthly amount, but doesn't want to agree to any sale price. So we are basically
talking about a rental agreement. I'm thinking about doing that, although I'd need to bump the payment, to cover the taxes and insurance, that he was (or should have been) paying.
So, any advice on the details so far?
If I could get a 5 year rental agreement on the property with maybe a 3% yearly inflation clause and additional to cover the taxes,
what would be the value of a property with a $12,600 yearly income. Since there is no structure on the property, I would expect no maintenance.
But, now that I think about this, I expect he will want to build a structure back, so I don't know!!!
But, what would someone pay for a $12,600 return?
We are still on good terms, understanding where each other stands. I have no interest in taking the pastor to court over a lawsuit, buy don't really want to loose any money either. I just don't see anyway that I come out of this without a loss.
He called me today, saying I have looked over what I have paid, almost $80k and, I stopped him, saying that was just time on my money, I would have done even better if I had just put it in the stock market. He responded, OK, you don't see that as anything you could knock off the price. Me, "No".