third party property purchase, we will rent it

[flower04]

We have a family member who has business partners that are looking to purchase a "rental/investment" property. This family member knows of our situation (walking away from house but haven't received NOD) and asked us to "draw up a proposal" from him to present to his partners.

This is attractive to us because we get to pick our home (possibley brand new) and build into the purporsal that we have an option to buy it at fair market value in 4-5 years after our credit will allow us to do that.

Thoughts? What would you put into the proposal? It sounds like such a great opportunity that is almost seems to good to be true, but I know some of these business partners and they are not shaddy and very trustworthy.

[newbie2]

quote: It sounds like such a great opportunity that is almost seems to good to be true, but I know some of these business partners and they are not shaddy and very trustworthy

My 2 cents (adjusted for inflation Don't do it. DON'T do it. "Too good to be true" and "not very trustworthy" should be sending the red flag screaming at your face.

[Flamingo]

How well do you "know" these business partners? (Newbie2 misread your posting and thinks you stated "not very trustworthy" when you stated the opposite). If you just know them from face to face contact and have no idea of their actual business dealings (i.e., availability to their books and records, etc.), be very careful as to how you proceed. Investigate their dealings and holdings carefully before you step into something that could leave you in tears in a few years. In plain words, do your homework and you never really know anybody until you live with them for a while and do their dirty laundry...

[newbie2]

Flamingo is right, I misread your post and apologize.

Please do be careful though. What they are talking about is a "rent to own" and there are glitches with those that may not crop up until later. Have an attorney review the documents if you are going to consider it. (Ideally, a real estate attorney)

[BCA2009]

Any landlord is looking for longterm low maintenance renters. Because the "investors" know you, they must think you fit the bill. Alot of post BK families would make great renters. Especially if the BK was due to a onetime hardship (job loss, medical reason, etc.) rather than poor self control and lack of responsibility.

Assuming you have steady jobs, you would perfect because you are not going to be buying a house anytime soon.

I would not sign longer than a 1 year lease and not commit to any kind of purchase agreement.

[flower04]

I do not know all the partners, I only know two of them, one of which is a family member. He's an attorney specializing in real estate so I know there is no risks invovled. The other partner I know is an attorney in the same firm but a tax attorney who actually does our taxes so he already knows of our BK.

What would be the downside to signing a long-term lease? We would not commit to purchase but would build in an 'option' into the contract when our lease (long term-3 yr) is up.