Buy on contract to sell on contract?
I suppose, from a certain perspective this is sort of straw buying, but in a way I thought it might pertain to wholesaling as well...sort of.
So, I've got an individual that has been renting their entire life and decides theyre ready to buy a home, but they're looking to buy on contract with a lump sum down and then a certain budget each month.
I've also got an individual wanting to sell a house locally and is willing to sell on contract. My initial thought is to just bring them together and request a small commission, but there's also this thoughts that if I play my cards correctly I might be able to buy the house on contract myself for $60,000 and then turn around and contract the house out the interested party with a point higher interest and slightly longer term. I haven't specifically crunched the numbers, but just wanted to get some opinions.
For instance, say I can get the house with $5000 and 20 years at 5% and I could go essentially take the buyers $5000 and then go 25 years at 7%.
Another thought is to just do a rent to own type of contract. Anyways, these are my thoughts and wanted some input. Anyone ever done this? Any benefits to sell on contracting and slightly lowering cash flow by offering a longer term so that ultimately potential interest justifies it.
Would appreciation any feedback.