I have 1.5 acres of vacant land and have been approached by a buyer to purchase 1 acre of it. He has agreed to pay all expenses on survey, deed transfer, environmental study, fencing between the acre and half acre, we agreed on a price of 50,000, verbally. Now he has contacted me and wants me to hold the mortgage: 10% down and 7% interest over 15 years. I don't know enough about financing to know if this is a good deal for me or not. I am 71 years old. My wife retires in 2 years and we want to move. She is worried that if we move we may have a problem collecting the mortgage, and she is worried about what happens if he stops paying?
We live in Florida, Hillsborough county.

He can borrow the money and hold a mortgage on the land he wants. I don't think it is a good idea for you personally to hold a mortgage seeing as you are 7l and want to move. I would say listen to your wife.

Hello j:

I don't know. If he paid you CASH, where could you put $50K so that it would earn 7% secured by real estate?? You couldn't. And, at 71, that's a chunk of cash flow. A savings account today pays, about 1%.

Plus, there's no bank that will loan him money on vacant land. So, if you want to sell it, you're going to have to finance it too.

But, as I said above, the loan IS SECURED by the property. If he misses a payment, you can get the property back. Yes, you can do that even if you don't live nearby.

I WOULD, however, have the purchase contract written up by YOUR real estate attorney.

excon