LAND CONTRACTS
This group is for AN investor that wants to take advantage of a little known strategy that i have Perfected and use as my investment strategy exclusively !! LAND CONTRACT is the strategy i used to own my first home and now use to own MULTIPLE homes !! this Little known GEM can be used in a number of ways. Being CREATIVE is the secret to this beauty . Learn this ONE swim lane and you will out perform everyone around you when it comes to RETURN ON INVESTMENT !!
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What is a Land Contract ?
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What is a Land Contract ?
updated 1 year, 1 month ago
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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.
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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
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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
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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
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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
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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?
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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
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is aVIDEO that will help explain the land contract strategy
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