What is a Land Contract ?

  • What is a Land Contract ?

  • Jay St Hilaire

    Organizer
    December 18, 2019 at 10:08 pm

    This discussion will explain the ins and outs  of what a land contract is !! 

    #1 its a seller finance deal = what does that mean ?  the seller will allow you to occupy the property with a down payment (sometimes low ) and make payments to fit your budget.the total price can be negotiated and the taxes,maintenance and insurance is the buyers responsibility.

  • Jay St Hilaire

    Organizer
    December 30, 2019 at 9:05 pm

    The Land Contract TERMS are specifically the 1.Down payment 2. The monthly payment 3. The total price 4. The interest rate = All of these are NEGOTIABLE

  • Jay St Hilaire

    Organizer
    December 30, 2019 at 9:27 pm

    WHY ….did i decide to become Obsessed to become an expert with the Land Contract strategy ? At  first it was the ability to buy with a no $ strategey .YESS you can buy a seller finance deal with NO $$ …How ? …..by what is called a SANDWICH lease or finding a deal and also finding a buyer for that deal and being the middleman or middlewoman.soooo i found a land contract deal then i found a land contract buyer and i just inserted myself into the transaction and made $$ in the middle. we can get more in depth in this strategy later but just know it is in the toolbox

  • Brook

    Member
    January 4, 2020 at 10:05 am

    Hi Jay,

    Your explanation of a L.C is Great.      Question … Is a L.C different than a purchase and sale contract? or do I use a P&S contract and just spell out the terms of the deal? in essence, making it a L.C

    • Jay St Hilaire

      Organizer
      January 7, 2020 at 11:17 pm

      hi Brook  a purchase and sale contract IS a contract to use to buy or sell property but a LAND CONTRACT at least in my state ny is used in my opinion as a SPECIALTY contract where the transaction is spelled out in special terms that is negotiated between the seller who will be financing the deal and the buyer who will be buying on a rent to own where ALL down payment AND monthly goes towards the purchase price .including interest IF charged.soooo it is also referred to as a seller finance deal because the SELLER is actually acting as the bank would in a traditional mortgage………let me know if that clarifies or you have any other questions on this amazing startegy

  • Brook

    Member
    January 9, 2020 at 9:56 pm

    Jay 

    Thanks for the explanation. I didn’t realize that the monthly also goes towards the PP. Is that standard? or a negotiated item?

    If that’s the case (monthly goes towards PP) and the (tenant) buyer stops paying – to get them out- would you go through the eviction process or do you have to foreclose on them?

  • Jay St Hilaire

    Organizer
    January 10, 2020 at 1:31 pm

    Hey Brook. Thanks for your questions!! in A Land  contract the BUYER pays the monthly Pymnt. This Entire payment all goes to the Total sales price except the interest part depending on if the seller charges an interest fee. Now how this is different from a lease option where you need TWO contracts -#1 a lease and #2 an option to purchase contract AND only a portion of the payment goes to the sale price. So the land contract is only ONE contract. Also in the land contract strategy the BUYER pays all taxes and insurance over and above the monthly payment. 

    If the buyer defaults on the a-monthly payment b- taxes c- insurance then the seller can treat as if it’s a rental and evict. IF………. they have not pd 65% of the contract. At least in ny this is the advice I have gotten consistently from multiple attorneys in ny. ……IF they have pd 65% of the total sales price  THEN you will have to foreclose   At least in ny. Please check with YOUR attorney in your state. If any part of this DOES NOT make sense to you or if you don’t understand a part please ask me to clarify. Want to make sure I explain things clear

  • Jay St Hilaire

    Organizer
    January 22, 2020 at 5:29 pm

     is aVIDEO that will help explain the land contract strategy     

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