How many land contracts can I do in a year?

Question

Is there a limit to how many land contracts I can extend in a year?

It's a good option for me. I'm 52, want the passive income but not the landlord responsibilities. I've heard there's a limit to how many & my CPA is still on vacation.

Jeffrey Donis · Answer

@Cathy Malmrose Yes, I'd talk with a CPA.

If you're looking for passive income, but without the landlord responsibilities, you should look into investing in an apartment syndication. Passive investing in an apartment syndication would check all of those boxes!

Hope that helps. Good luck! Let me know if you have any questions.

Cathy Malmrose · Answer

Thanks, that's helpful. No, I'm not licensed, just a small-time investor. Some are in my name, some are in the company name so that might help but I am a 1 person LLC, a disregarded entity, so, yes, I need to talk to a CPA.

Scott M. · Answer

Are you a licensed realtor?   Are you a licensed builder?  Do you personally own the homes?  The answer you seek depends on the answers to those questions.  Also, are you servicing the land contracts?  As I am now a broker I don't recall the numbers but in the early 2000's I was told by one of our lawyers that I needed to be licensed because we are over the limit and again, I forget the limit.  Was like 20 or 25 at the time.  But if you were a licensed builder you could do more as long as you did work on them.  Again, I get this isn't useful but yes, there is a number

There is also a number you can service.  You can service up to 75 before being a licensed servicer the last time I checked but you can only hold tax/insurance escrows on 10.

I would ask your lawyer, not your CPA regarding this issue as it is license law not tax law.