Hi, I have a problem I think I've solved but I lack the experience to work out all the details. I have rental property which is on a large develop able lot with a shop in the city. I worked out a deal to sell it to my long term tenant for $335K with out a realtor. The tenant needs the space and storage, he can not replace it for same price anywhere in our area. His appraisal came in at $305K. I couldn't find any great comps with same bed bath counts really close by that supported a higher value. The comps the appraiser was using did not have the same attributes my buyer/ tenant was looking for though. I don't know what type of loan he is using but I'm assuming FHA.
We've worked out a compromise. I'll sell him the house for $305K he can get financed, plus I will carry a contract for an additional 15K.
I'm looking for advice and or precautions.
Some questions and concerns I have are:
any other warnings I may not be considering?
Thanks in advance for any advice anyone has
The bank may not allow this, im not sure. Best to ask an attorney or title company
If I’m understanding you correctly, the bank cannot say one thing about this. It sounds like you would be carrying a note for the tenant which is separate from the bank’s loan. I’ve done this with a business acquisition before. An attorney writing the promissory note would be best.
Thank you all the input. Today I found a loan amortization schedule in excel, there's also a bunch online. The contract or promissory note and collateral are the next details to work out.