Replies

1. 
   DanT | Mar 23, 2006 12:46pm | #1

   The answer to your need is......attourney.  State laws in real estate vary so much both in rental rights and sale that a local attourney is the way to go in my opinion.  DanT

2. 
   blue_eyed_devil | Mar 24, 2006 12:35am | #2

   Jcrew2, you are looking at several possibilities.

   You could option the property. An aoption agreement is really two documents: the option agreement and the purchase agreement. An option agreement contains an agreement to purchase at an agreed upon price, at an agreed upon time. Option agreements are unilateral. That means the seller has already agreed and the buyer gets to decide if they want to go through with the purchase. You can pay as little as one dollar for the option to buy.

   We are using the option agreement right now on a spec home that we are building.

   A second choice would be to purchase the property on a contract for deed. We call them "Land Contracts" in Michigan. The seller does not deliver the deed, but instead holds it, or places it in escrow (the better choice) until the terms of the purchase agreement are met. You could write the agreement to put $1.00 down and the balance at closing. Closing could scheduled to happen after your have constructed and sold a home on the property.

   I would suggest consulting with your accountant first regarding this type of a transaction, then consulting with an attorney in your state.

   Keep in mind that the financiers might require you do purchase the property in a specific way, so I'd probably have a consutlation with the financial people first, to see if they had any specific requirements.

   All of these documents are easy to find on the net and in real estate investment type books. I'd suggest reading about a half dozen of these type books so you better understand the paperwork behind the scenes of a deal like this.

   blue