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Real Estate Web Guru · Guest

Is there any investors or realtors in here that hold any contract for deeds
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Jeff Lundquist

jseamless · Guest

This is a really good way to allow a tenant to rent-to-own a property. There are many advantages here are probably the two most popular reason to use them.

1) If your tenant defaults on the payment with this contract you usually can evict the tenant as apposed to going through a foreclosure proceeding.
Some states it takes almost a year to complete a foreclosure plus legal fees and lost rent revenue.

2) If the land contract is recorded when your tenant goes to purchase the property it can be treated as a mortgage refinance. This allows the tenant to base the acquisition cost off of appraised value rather than sells price. They can usually close with no out of pocket and maybe even walk away from closing with cash in there hands.