with interest. When paid in full he gets a deed from seller. You can put a balloon clause in the contract which
calls for the buyer to pay off or refinance within a certain period of time, for example 2 or 3 years.
Interest rate is always more than a bank would charge. It can be a good solution for you if the buyer is
good. Don't do it without a REALTOR or attorney. Check buyer's credit before committing to a land contract.
Renting with an option to buy is totally different. This is not a sale and the renter has no obligation to buy.
If you rent, it gives you an income. Adding an option to buy limits your ability to sell until the option period runs out. If you include an option to buy, make it for a limited period of time.
Note:I specialize in home's that no one else can sell!
Have a nice day!
Alan Boyle, MBA