Buying Rentals Through Land Contracts

[Kyle B.]

I'm looking to purchase rental properties, and I recently spoke with a family member who told me that traditional financing for non-owner occupied properties is very difficult in my area (NW Indiana). If you are able to get a loan, minimum equity will be 50%.

He recommended I look into acquiring the property through a Land Contract. I wanted to see if anyone had experience acquiring properties through this method. If so, I'd be interested in hearing how to begin structuring a deal like this. I'm assuming you would need an attorney to structure the contract and make sure both parties understand the agreement.

From my understanding, this is essentially seller financing, but is there a specific difference between this and land contracts? If so, what are the pros and cons of each method? Is this the best financing option given that traditional lenders are scarce?

I'm hoping other BP members have experience in this area.

Thanks,

Kyle