Investor · MI · Member since 2015 · 227 posts · 478 votes
Have a deal on the table where the owner is open to a land contract with fairly generous terms (march close, 3%, 30 year am, 10 or 20 year balloon 20% down.
I am not super familiar with land contracts, but I know they differ from owner financing in that in an LC the owner holds the title and the 'note'. I would greatly prefer to do traditional owner finance where I hold the deed and the owner holds the lien, clean and easy.
The question is, is there a big enough material difference between OF and LC to try and change the owners mind?
Follow up: What could I say to convince the owner that OF is the better way to go?
Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
4y
What you could emphasize to them owner is that you holding the deed would allow for you to refi and put bank financing on the property at some point before the terms and you could potentially pay them off sooner
What you could emphasize to them owner is that you holding the deed would allow for you to refi and put bank financing on the property at some point before the terms and you could potentially pay them off sooner