I got a call today from a seller who lives in FL and wants to get rid of his properties in MI. On the one Im most interested in he wants to do a land contract. Is there a way that I could assign a land contract? If not i was thinking a subject to agreement and assigning interest to my end buyer. Please help!
A seller offering a land contract sounds more like a shark. Most motivated sellers have no idea what a land contracts is and don't want anything to do with the property after the sale. Land contracts have so many things that can go wrong that most investors I know avoid them. I would think the value of an assigned contract for a land contract would be significantly lower than an outright sales contract.
Perhaps they are looking long term cash flow so you could steer them to owner financing which is usually much more desirable than a land contract. Owner financing transfers ownership and encumbers the property with a mortgage.
Yeah land contracts are great for the seller and crappy for the buyer.
You aren't really a buyer in this case but a wholesaler. Have you listened to the recent podcast on subject 2 ( number 70)?? Might want to bounce this situation off of him as he does a lot of them.
In Michigan Ohio and Minnesota and Wisconsin,land contracts and contracts for deed are very common. And in those states many people can't get home loans easily so some kind of seller financing is in order. What you have to look at is if the buyer doesn't pay the contract. Ohio has some unusual circumstances with land contacts, if the vendee defaults and has less than 5 years and less than 20 per cent equity in the property you can evict vs having to foreclose. So these contracts have pluses and minuses.
@Anthony Bell You can do this here in West Michigan. If someone is looking to sell multiple properties from another state, they're probably an investor who is tired of dealing with the houses. I don't think it is odd that they would know about land contracts.
If you want to talk details, just shoot me a message and we can chat about it there. I'd be interested to take a look at them as well.
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