Updated about 10 years ago on . Most recent reply
Land Contract vs Cash Purchase
I am in negotiations to purchase a rental, it was originally advertised as a land contract. The land contract was $500 down $375 a month for 10 yrs for a total of $45,500 which is close to the current ARV. This property is actually in very good condition but will require about $15,000 to rehab, the biggest expense being a new roof.
I asked about a possible cash purchase, the price was $20,000. After analyzing I put in an offer of $14,000 which is apparently to low because it wasn't accepted. The response to the offer was
Now I may be reading in to this to much but I don't feel any other offers are out there because of the time on the market and conversation we have had previous to this. My question finally, should I do a land contract? I know owner financing is a good thing but I am not sure the best way to structure it. Any thoughts would be great?