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Greetings:

I am still learning about the various creative finance techniques and would like to know if anyone knows if it is possible to do a sale/leaseback on a residential property. I have heard of this being done on various commercial deals but have yet to come across anyone who has done it on a residential deal.

Sincerely,
Benson Dawkins III

I have purchased a property through a short sale. The (former) property owners are leasing the property back from me. It does work! Good luck!

Greetings:

Thank you for taking the time to respond to my question. I would like to know if you know of a type of contract that can be used to do a residential sale/leaseback (I didn't see one in the real estate portfolio or real estate toolkit). What I am really trying to find out is how to structure such a deal. Do you use one contract for the sale and another for the leaseback part of the deal (or is everything included in one contract) because I am concerned about agreeing to a sale and then having the person back out of the leaseback.

Any further info you can provide on structuring such a deal would be greatly appreciated.

Sincerely,
Benson Dawkins III

I purchased the property directly from the sellers (they were in foreclosure) --used a standard purchase contract for my state. I then leased the property back from the sellers.

I'm no attorney, so you should double check with one, but if it was me I would keep the paperwork separate. Complete the sale then have the seller sign a residential lease. If the seller backs out of the lease, you can always find another renter. But if the deal is a good one, you don't want the purchase to fall through.

Are you structuring a creative deal where the seller is lease-optioning to you, then you are subletting to them?