Brian,
Will you provide an actual example of what you are doing selling these properties on land contracts.
I would like to know:
Total cost basis (purchase price, rehab, holding costs)
Selling price
Amount of buyer down payment
Terms of the agreement (Int rate and lenghth)
What type of screening do you do for your land contract buyers.
I hope you don't mind the detailed questions. I am contemplating the advantages of a properly structured land contract deal over a straight rental.
Brian,
Will you provide an actual example of what you are doing selling these properties on land contracts.
I would like to know:
Total cost basis (purchase price, rehab, holding costs)
Selling price
Amount of buyer down payment
Terms of the agreement (Int rate and lenghth)
What type of screening do you do for your land contract buyers.
I hope you don't mind the detailed questions. I am contemplating the advantages of a properly structured land contract deal over a straight rental.
Contact Matt Reed on BP and see how things went 2010 to present.
I am currently focusing on a National Lease Purchase mentoring program. REIs help sellers sell on Lease Purchase for top dollar and no agent's fees.
The national election, whoever won, did not guarantee that home loans will be easier, or small business loans will be easier in the near future.
With credit tight, and a Buyer's Housing Market, what Lease Purchase allows is a better way to sell your home at a higher price, with less sales costs, such as agents fees, closing costs, sellers concessions, and worst of all, price reductions, as compared with selling with an Agent.
And the Seller gets a better tenant, with a long term attitude, that wants to own rather than just rent.
Many times, if market rent is lower than PITI, we combine Rent with a monthly option payment to meet the monthly outgoing costs, so sellers do not have to FEED the house they are selling on terms (Lease Purchase).
We use a Credit Improvement Company with a 10 year track record that teaches the tenant how to raise their FICO score.
And we use a loan servicing company that protects the tenant by taking the money paid from the Buyer, and pay the bank, the taxes, and the insurance, and the balance is sent to the Seller.
Bottom line is, if you follow these rules for Lease Purchase...
-protect the Buyer,
-protect the Seller,
-act as a principal,
-don't be greedy with your assignment fee,
-put a good tenant buyer in with good income and a chance to get the mortgage, -and network with financial and tax advisors that know their clients' housing issues for leads of Sellers and Buyers.
If you follow these rules (common sense really) you can build a great business.