That is exciting George, hope all goes well. I believe this is a fantastic way to grow community, and enable flexible transistion of real estate, though
I’ve never done such an agreement; however
I have known shysters who utilized this method to get high interest rates and/or take advantage of case of default.
So the question is, if something unforeseen happens, how and who makes the call?
For instance, some agreements are written up that all payments made to date are forfeit in case of default for any reason; so miss your last payment because of a health issue and you lose all your investment….
Another would be capital contributions/upgrades to the property.
Another would be prepayment penalties/clauses. If you pay the property off ahead of time, or make additional payments, will you have penalties or owe all the perceived calculated interest anyways?
Have fun tomorrow!
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