Cash Flowing Contract For Deed Package

[Garrett Crain]

Hello,

I am a real estate investor from Oklahoma City, Oklahoma. We flip properties, build a rental portfolio but also do Contract for Deed properties.

I know there are some that build a rental portfolio to sell to an investor or several investors in a package deal. The seller is providing the service of finding the homes, obtaining the homes, rehabbing and potentially placing the tenant. They then sell the cash flowing/appreciating assets to another investor.

For those unfamiliar with Contract for Deed, it is essentially Seller Financing. A property is bought for cash, rehabbed, refinanced and sold. The “buyer” pays a down payment and will pay the property off over 20-30 years through monthly payments. It’s very similar to the Rent to Own model. Unlike rental properties, there is virtually zero liabilities in regards to damages and virtually zero worry about vacancy.

I say virtually because there is always a chance something happens.

This is where my question lies. There is obviously a value in a package of cash flowing rentals.

- Is there also a market to sell cash flowing contract for deed properties?

- How would you place a value on these properties you are wanting to sell?

- How would you place a value on these properties if you were offered a similar package as an investment?

Thank you