As a landlord, what is the easiest way to sell to my renter?

Question

I've asked my renters if they are interested in buying the loft they rent from me. They are interested. What is the easiest, most-cost effective way to handle this transaction?

Answer 1

Tell your renters to obtain an appraisal to identify the fair market value of the property and have them pre-qualify for a mortgage. You will have to give them a purchase agreement and they shoud give you a good faith deposit in order to know they are serious about completing the transaction. If they qualify, depending on the state the property is located in you will either have to open escrow or go to an attorney to assist you to close the loan. The mortgage co/ will then draw the docs and give your a closing date for thier loan. Then at the closing table either you will get a check for the proceeds of the sale, minus fees, or the proceeds will go to your mortgage company which holds the lien on the property minus any overages - your profit. The rental contract should be terminated at the same time of the closing and you will need to return any deposits to the renters/ now owners of your property. If its a lease, then you will have to negotiate breaking it in advance of the loan closing and how much they owe you.

Answer 2

That is a sensitive issue, I assure you one thing unless you go through a broker, you will be stuck with a problem one way or another, if you are sell a part of your facility, whether you own it out right or not you will still need proper documentation, even if you are a lawyer sometimes simple things are the most difficult because we assume, this is easy and I can trust, and well okay that sounds good, it is possible.
THIS IS ADVICE ONLY, I am guessing you are young, old or this is personal.
The best of the best even get beat. A loft above another is always the most disliked person(S) in the world, who ever designed a building with an upper part needs to be beat. There is no place in the world you can not hear "COWS" walking on your head. I am so unhappy everyday because we have upstairs cows
So if you want to sell you loft, do a walk throughh think it throug and consult a professional contractor and real e state person.

Answer 3

Get a lawyer to write up u good contract for starters. The most cost effective way for the renters would be a rent to own situation. You could collect their rent for the next year and put half into a savings, when a year goes by, the can purchase the home, and now have a down payment.
You could also just do it the conventional way and again have a lawyer draw up the contracts and they can just get a mortgage now. Simple and done.