Just finished rehabbing my 1st flip property and have it FSBO. Have a qualified buyer (from cursory investigation) who would like to do a Land Contract. However, they would be able to get a bank mortgage in 3-6 months and could buy the property outright. I had them chat with a MLO I know and they told me the same thing. I'm interested, but have some hesitations as I'm not familiar with LC's. I have a good RE Lawyer who does LC's so that's a plus.
The couple, though, has a daycare that would be in the house and that concerns me. Obviously I could mitigate possible house damage with a down-payment or something put in escrow - but is there any concern if a daycare child gets hurt that the parents could come after me as the deed holder.
Beyond all that, I'd love any input on structuring a short term deal like this. Still a LC? Or other better options? Or hold out for a traditional offer from a buyer?
The best way to protect yourself is make them carry a 1 million dollar insurance policy with a million in aggregate. Essentially providing 2 million in coverage and have you named as additional insured. Also, have your lawyer provide you with hold harmless letter stating that you will not be held responsible for any injury or liability of any kind.