Real Estate Investor · Biloxi, MS · Member since 2015 · 7 posts · 0 votes
Hi BP,
Unique situation I suppose but I have a very close friend that went through a difficult time when the market crashed. I don't want to get into specifics but he has plenty of cash. We are very close friends/business partners. He can't get a mortgage. He wants to buy a 300-400k home.
If you were going to buy and do a lease purchase with this person, how would you structure it?
Thanks for any input
Personally I would't. I don't do anything with friends or family I am not prepared to call a gift. I don't have a spare 300-400K to gift a house so I would not do that.
If for some reason I had to then I would just do a standard lease and treat them like a tenant (no beers after work, no hanging out watching the game) with a Right of First Refusal for when they were ready to actually purchase it from me. At that point charge whatever you feel is good for the house (what you owe or have into it or just give it to them)