Buying a Land Contract

[Jared Miller]

I found a land contract for sale.  The land itself is not for sale, the land contract is.  My guess is the owner of the contract needs a large sum fast.  They say the buyer never misses a payment, but I hope they do so I can foreclose.  The PV is $15,000.  Monthly payment is $500 and of that $500 about $50 is interest.  My question is, how does the transfer of the contract work tax and legal wise?  does my basis in the property become what I pay for it?  Would you offer lower than the PV of the cotract? if so how much?  is any of my thinking flawed about if the buyer fails to make payment, i can foreclose and the property is mine?  And if they do make payment, well then I just get my money back plus the interest?  Any other costs associated with the deal that I should know about? transfer costs etc?