Real Estate Professional · Novi, MI · Member since 2012 · 73 posts · 8 votes
Hi I have situation where I have a property under contract with a standard assignable purchase agreement for a set price. The property has gained interest from several buyers, but a few are interested in buying the property on a land contract. Is it possible to still assign the property with the land contract as long as the purchase price for the land contract exceeds the original agreement with the seller? Do I need a new purchase agreement with the original seller detailing terms of a land contract or can I still move forward with the original agreement?
Foreclosure Specialist · Miami, FL · Member since 2011 · 153 posts · 24 votes
13y
If you write a land contract on a property that you have under a purchase contract, how will you record it? You do not own the property? You would need to have the owner have the contract recorded. Then the property is sold.
You could then turn around and try to sell the land contract. At this point you are no longer selling the property (which was sold under the land contract) but rather you are selling a future income stream. To do this you will need to discount the income stream to present value. That is because, the prospect of earning X dollars in the future is worth less today. To the price for the land contract will be less than the property value.