SouthWestHomeBuyer 0 Report post Posted October 9, 2003 Can any one help me here? Has anyone done a land contract. I have the contracts from Bill Bronchick ,I just want to make sure I do this right. I have a house on owner carried 5yr balloon at 8% purchased for $139,900. I owe about $130.000. I have 4 yrs left on the note.I may have a buyer to buy at $145000. He says he doesn't have good credit but a good job. He and his brother want to buy with 10% down= $14,500. Now this will put me in the positive of about $5,000. I at least would want to get 10-11% interest a month for the deal. Should definitely give me a positive cash flow of about $200.00 a mo. My questions are: Should i draw myself up a land trust or PAC trust to do this transaction first,or can i do it simultaneous? How would the tax and insurance escrow be set up? Since i already have it ecrowed in my name. Would the tax bill and insurance be in the buyers name now? How would i not get busted by my mortgage holder(private mortgage)? I do believe i would have to create a note for the contract that seems simple. But how does that sit on public records when there is already a note and deed of trust on the property. Should it be labeled a wrap? what if the my mortgagee sees this? Should I not file it? And if the person who posted the link for the PAC trust would kindly put it up again i would appreciate it. In closing i could sure use a little guidance here as to the proper way to handle a land trust / land contract. Any comments or if any additional info is needed i will help fill in the blanks. Thanks guys and gals Mike Scarchilli email @ mjscarchilli@southwesthomebuyer.com Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 10, 2003 Mike, not wanting to seem like I'm passing the buck here, but I don't think this is a matter you should plunge into yourself. There are a lot of legal questions here that need answers. Guessing what those answers are may end up hurting you down the road. I think the best advice is to speak with an attorney who is well versed in the creative real estate techniques you are using. The money you pay now will be minor compared to what you may have to pay if things aren't done correctly in the first place. Share this post Link to post Share on other sites
SouthWestHomeBuyer 0 Report post Posted October 10, 2003 Thanks Michael, I know this seems hard and I suppose a good attorney is worth his weight in gold if this were to be done properly. I guess i am just looking for a solution to my problem of having to move back to NY. (huh? motivated seller am I ? ) I have been tralking to a realtor about getting this thing sold fast but its a bad time of the year she says to "sell fast". I really don't want to pay a commission but she even suggested a lease option. She seems to think it's the best deal in this economy and would take a fee then wait for the rest of the commision when it sells. This actually sounds good to me. Something about this lady ,I trust her judgement of the market knowledge of 20+ yrs. Hey, we pay finders fees dont we? When it actually closes then she gets her money. I guess that would be ok by me. I may just do that. Maybe a good realtor is worth HER weight in gold too. And just maybe a huge contact for me to buy some more L/O in this area. Has any one had good experiences with realtors doing deals with them? Inquiring mind wants to know! Thanks everyone Mike S AZ Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 10, 2003 Mike, I've never been one to bash Realtors. They serve the community and are needed by the majority of homeowners who sell, what, three houses in their lifetime?As investors, though, I feel we don't need 'em. At least, I don't usually. They approach this business in a way that is quite different than we do. As such, I find they usually get in the way. For your own personal lease purchase deal, I can't imagine why you would need the services of a Realtor and the accompanying six percent commission. With all the information you have access to right here, you can do it yourself, probably do it better, and save yourself a chunk of change in the process. It's one thing to pay a finder's fee. It's quite another to pay $9K on the sale of a $150K property.And as for a Realtor being a good source of future creative deals, that's not likely. Again, they are taught to approach the real estate business with a more traditional bent. Nothing wrong with that, but as an investor I find the fit is usually not a good one. My two cents..... Share this post Link to post Share on other sites
-Tony- 0 Report post Posted October 10, 2003 SouthWestHomeBuyer I buy houses any condition any situation just kidding well, no I do buy house but anyway just trying to give you a smile. Hope everything works out Share this post Link to post Share on other sites
