Creative Financing for Tenant
Hey everyone,
I have a house with a current tenant in it, who has been there for 6+ years. We'd like to sell the house, and figure it's worth giving the tenant a 10% discount to buy it from us. (Saves us from having to get them out and doing the necessary cleaning/upgrades to get top dollar for it, in addition to the vacancy time). It's somewhat unrealistic that they'd be able to come up with a significant down payment, so I'm wondering if there are any creative ways for us to sell it to them in order for them to qualify as a buyers. My only thought so far was to 'sell' it to them for fair market value, and then offer a significant seller credit at closing to act as their down payment. Do the banks go for stuff like that? Any other suggestions of ways to make it work? The house is worth about $340k, and we'd be willing to sell it to them for $310k
Most Popular Reply
Hi Angela,
Are you willing to seller finance to the current tenant. This is a very plausible option, however based on what you said, it seems you would like to sell for the full value and move on. You can get creative with owner financing/ Lease Option to make this work if you are willing to let the money come in slowly.