I was wondering can you Land contract out a Land Contract. I know its not clean, but is it legal?
Ex: A buyer is purchasing a house via LC and wants to sell the house via LC, is this possible?
It will most likely violate the terms of the original land contract. The best you can probably do is a lease option unless the owner is on board with whatever your plans are.
never sale with land contract, sale with lease option.... hope it worked out for you!
reason? @David Bell
Selling on land contract gives buyer too much power. Unless your getting a huge own payment and the buyer is more of a savy buyer. In alot of states youll have to go through a foreclosure to get them out the property if something goes wrong on their end. In my state if they default on a option agreement then you can go through normal eviction process to get them removed from property.
As a rule I buy on land contract and lease with a rofr as an exit.
Buy on terms and rent out or help the renter get financing.
It gets ugly when you sell on CFD or other types of executory contracts and the vendee defaults.
See my article
Thanks @Brian Gibbons That article was very helpful
It depends on the terms of the original land contract.
The thing that has most people advising against it is that once a buyers equitable interest reaches a certain point (typically determined by the agreement) you have to go through the foreclosure process. Prior to reaching that point it's far easier to end the relationship.
Here's my opinion....
I love buying on LC and have bought nearly 60 units this way ranging from SFR's up to 12 and 16 unit complexes.
LC's are best used to buy businesses (involving real estate) and investment properties.
When selling to an "owner occupant" there are just too many instances where the buyer looks at it no different if it were a lease when it comes to their performance.
I've done one "sandwich" land contract (I may have just invented that term) and it was a small commercial building. It's going perfectly in every aspect thus far.
@Brandon Hicks See, that's what I'm trying to do a "sandwich" LC
Just be sure to check your agreement with your seller. My agreement (land contract) requires that I obtain written permission from my seller to be able to sell to my buyer on LC.
Best of luck
Will do, thanks alot @Brandon Hicks
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