First Serious Buyer Only Does Land Contracts?

[Cameron P.]

So this is my situation, through my beginning marketing I ran into a gentleman that does a lot of property management and works with 3 millionaires investor friends that he brings in for bigger deals when he can't do it along. He's a buy and hold investor and is currently renting out over 300 units in Kent County. Now he is only looking for housing that is 40,000 ARV and wants to do a land contract with 10% down and a 5-7 year plan. Now I don't have too much cash to be the cash buyer myself since I was laid off. But the wholesale opportunity with this guy is amazing and where hit it off right away even bring business for my family flooring business. So the meat of the question is how can I pull off this wholesale deal as a land contract but I myself can't be the cash buyer? Is it even possible?

Another question to maybe take someone for a loop. Would it be possible to get a land contract home under contract and then wholesale it as a land contract without having to be the cash buyer?

Thank you in advice for all those who have answered and I apologize if this is somewhere else or I just made a mess of this. I’m still very new and this is my first real post. soooo BOOM BABY!!!! Taking steps! LOVE IT!!!!!!

[Bill Gulley]

Steve Babiak, you're right, I was :)

10% is too skinny to make money, so selling at a higher price is an option.

I have done one installment on top of another, but only for a sort period of time, the buyers are really at risk, double trouble. You'll have an insurance nightmare if there is an insured loss. If the end buyer performs and the first buyer fails, for any reason, you can have problems. It complicates issues of death, estate settlement, underlying mortgages, bankruptcy, foreclosures and throw tenants in there and you have a real mess.

If you have a CFD and another CFD, the second is really no more than giving possession, allowing equity to be established and agreeing to buy, but it's just a contract that gets you to closing with the right to take title. A lease option after an installment purchase does the same thing and has less pain at the end buyer's side. The guy in the middle has two masters, one selling you can cause trouble and the one buying. It's ackward and nothing you want to do long term especially if you're picking up a small fee at the end with a few bucks a month spread.

A daisey chain of installment contracts IMO isn't practicle, if you have the skills necessary to buy from a seller in that manner and disclose future installments, then you should have the skills to acquire it by title with a Sub-2 if necessary and then be in a better position to pass tiltle.

Many at 40K may be paidoff, just take title and sell under your CFD, I'm assuming exceptions under the SAFE Act too.

This also goes to having the right of sale of the property (popular discussion lately) with an option you only have a contract you don't have the power of sale. With the CFD it is generally accepted (asusually deeds were escrowed) that the buyer may list and sell, payoff the installment note as any mortgage would be. The same is true with a Sub=2, being in title and paying the amounts due for clear title. Much cleaner.