Learning and Burning 11 Report post Posted February 10, 2013 Ok, so i keep getting asked if i would do a land contract instead of a lease with option to buy? I'd like to to know what the difference is and if any of you ever get this question when working a deal? Which way keeps my security? Whats best for homeowner? How does a land contract play out in the big picture? Could i take a non refundable deposite on a land contract? Never easy but, always worth it..... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 11, 2013 A land contract, (contract for deed), is a form of owner financing in which the buyer and seller agree to a purchase price and the buyer repays the loan in installments. Under a land contract, however, the seller retains the legal title to the property. When the terms of the agreement have been met the seller is obligated to convey legal title to the buyer.I don't see where you might fit into this picture, other than negotiating a finders fee for bringing a buyer to the homeowner. Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted February 12, 2013 Well, through my marketing Rent to Own i'v gotten this a few times now. Would i consider a land contract instead of a lease with option to buy? Figure because most are not familiar with l/o. As i am not familiar with land contracts. I of course have said no that what i do is specialize in lease and lease options. I want to be schooled on the land contract so to help me in my endeavers. You say this would not include me other then a finders fee. So, when im showing a house and am asked if i would consider a land contract? I guess i would say like i have been. Its not what i do and so NO. Is there any advantage, disadvantage for buyer and seller? vs a lease with option to buy? Learning and trying to keep burning. Working on getting the next one.... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 12, 2013 You could always ask the homeowner if a land contract is something they would consider. If they agreed, as I wrote above, you could go for a finders fee.There are pros and cons to both strategies. Do a search online about this and you'll find numerous articles and view points. Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted February 12, 2013 OK. I will do more homework on this. So as for my s.l.o's its not what i want to do. But if seller would then i can be out with a finders fee. That part i wouldnt mind. I like it... Thanks Again. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted February 12, 2013 You can offer a L/O with bank or owner financing available when the t/b exercises their option. 1 Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 12, 2013 You can offer a L/O with bank or owner financing available when the t/b exercises their option. That's a smart way to go. The t/b will be able to prove his/her credit worthiness to the homeowner with a year of timely rent payments. Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted February 14, 2013 Yes. That's a good way to go. I'll have to add that to my bag.... So, now i talked to a seller today, his dad left him a house that he does not want to deal with. Has had renters in it for three years and now having to evict them. Says he wants to keep his name out of the deal, when seller gets financing. Under the table?// He mentioned a quick claim deed to seller/me and he would be paid outside of the sale. Thats what he wants to do.Now again what does this mean? Does it make sence? Is it lagite? Can it happen? WTHeck? Can i swith a l/o to such after? I drove by the property and people are moving out. Will find out whos on title tommorow. Where's the easy one? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 14, 2013 Does it make sense? Not to me. FInd out more about what this homeowner wants to do and why. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted February 14, 2013 Hi Guys, I am back. December I had a couple deals fell through and work got busy. Though I learned a couple lessons as well. January my wife had our first baby girl!! A little eating-pooping machine she is. My job is also on the busy season, so between the baby and work I've got no chance to sleep or taking time out to do REI. Michael I know you asked someone to email me, but I just saw it because I was away for so long. Sorry about that! It's going to be busy for another 2 or 3 months and then I got to make a trip oversea, but hopefully as soon as that is done i can take a break and back into the game. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 15, 2013 Daniel Sun! Welcome back, stranger! First, I figured your disappearance was in large part due to becoming a dad for the first time. Big time congratulations on that. If the kid looks like me it's purely a coincidence. I know you're busy, but keep some irons in the fire. You were off and running last we spoke. Keep that momentum going. Share this post Link to post Share on other sites