I am intrested in investing in some real estate and a broker who attends investment meetings and works for a morgage company took me to look at a condo which is for sale for ,000 appraised at but it is a land lease option and ,000 has to be paid upfront to purchase the condo, and later if I wanted to sell I would only be able to sell for cash? Can anybody advise as to what problems may arise here. The Condo is nice inside but buildng is ugly not great neibourhood.
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Ok.. Im not an expert on this but I did look at a premanufactured home a couple of years ago and it had a land lease with 2 options.. 40 years or 99 years with the option to buy the land at a later date (they didn’t know the price they wanted to ask) Basically if Im correct you dont actually own the land, you own the property.. I dont know what problems could come up but I didn’t like the idea of not owning the land so i didn’t do it. I would be really careful with it.
Another thing it could be is a "co-op" which means you own part of the whole complex (like a corporation) which is much harder to finance and they want a higher down payment. I’m not really sure how they work but I know they aren’t worth as much and don’t appreciate in value like a regular condo would.