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Selling Our Home to an Investor and Renting it?

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D

dreyfuss

Guest
State = California. This is a combination divorce/real estate question.
I'll be as brief as possible. The house needs to be sold. My wife wants to sell the house to an "investor" who will then rent the house back to her.
Is anyone familiar with this sort of "scheme"? The house rentals in our area are going for $1500. She is hoping to work some "deal" to get that down to $1,000 a month. The 2 bedroom apartments in our area rent for $1000 so she feels she could sell this house to the investor, pay me my share, and everything will be just fine and dandy. I am not familiar with these type of transacations. What is the process, expenses, etc.? :eek: I am suspicious and reluctant. Any advice would be appreciated. Wouldn't getting a realtor make more sense for God's sake? I believe this is known as a rent-back agreement. No one seems to know a heck of a lot about it. That worries me even more.


Thank you,

Dreyfuss
 


JETX

Senior Member
Depends on whether she is selling him to a fair market value price or not. Lots of these deals 'go south' when the 'renter' sells for below market on the promise of some kind of rent abatement or discount, then the new owner evicts them right away..... or refuses to maintain the premises causing the 'tenant' to move out.
 

HomeGuru

Senior Member
dreyfuss said:
State = California. This is a combination divorce/real estate question.
I'll be as brief as possible. The house needs to be sold. My wife wants to sell the house to an "investor" who will then rent the house back to her.
Is anyone familiar with this sort of "scheme"? The house rentals in our area are going for $1500. She is hoping to work some "deal" to get that down to $1,000 a month. The 2 bedroom apartments in our area rent for $1000 so she feels she could sell this house to the investor, pay me my share, and everything will be just fine and dandy. I am not familiar with these type of transacations. What is the process, expenses, etc.? :eek: I am suspicious and reluctant. Any advice would be appreciated. Wouldn't getting a realtor make more sense for God's sake? I believe this is known as a rent-back agreement. No one seems to know a heck of a lot about it. That worries me even more.

**A: I agree with JETX. Most are scams. Make sure an attorney reviews all documents prior to her signing.

*********

Thank you,

Dreyfuss
**A: good luck.
 

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