Contract for deed basics

2 Replies

Hello everybody!

I've noticed over the last several years that my kids have zero interest in real estate investing. (I gave them all Rich Dad Poor Dad... oh well.) So it looks like putting them in my will might not be the most viable exit strategy. I'm planning on focusing on SFR going forward and would like to begin selling the older holdings as we get new ones.

Can anybody recommend any good resources for learning about selling contract or title for deed? Books, webinars, etc. Or if anybody has any advice or experience they want to share I'd be grateful. I'm all ears!

Thank you!

@Marvin Meng on CFD you retain legal title of the property until all conditions are met. It is a type of seller financing. All you promise to do is give clear title once all the payments are received. You can encumber the property as long as you can clear it before you need to give title. In some states it is easier to get rid of purchasers as you do not need to foreclose. I bought my property on a CFD and the person I was paying died. There were some additional hoops I had to jump through to get it out of probate. I would talk to a local real estate attorney about CFD or mortgage and note as the best option for selling.

Thank you! I think I found a good attorney to talk to about this. My biggest concern is my ability to administer the loan properly. As a landlord I've found my own willingness to accept excuses, cut breaks, let stuff slide... problematic. If the loan is administered by a third party this takes me out of the loop, which is probably good. If it's all me...