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Updated over 14 years ago on . Most recent reply

User Stats

33
Posts
8
Votes
Nick Connor
  • Real Estate Investor
  • Grand Rapids, MI
8
Votes |
33
Posts

Land Contracts

Nick Connor
  • Real Estate Investor
  • Grand Rapids, MI
Posted

Hello,

I'm not sure if this thread belongs in here, but I couldn't find anything on this in the forum, so feel free to move it if I'm in the wrong category or direct me where to find info on this.

I have a couple of questions concerning Land Contracts. Being new to the biz and talking to other newbies, we seem to have different opinions on this and I thought this would be the most logical place for me to get my info from some of you real estate pro's.

My friend seems to think LC's are a better option than going with a lease option. I'm having hard time believing a LC is better only because of the foreclosure process if they default. You're talking about a minimum of 7 months for the redemption period and there's still court (if needed). This to me, seems like a high risk option for someone just starting out. So here are my questions...

1. What are the benefits of a LC compared to lease option?

2. Have you ever had to go through redemption period on a LC?

3. If so, did you ever buy another house and used a LC again?

4. Why to # 3?

Thats all I have for the moment and I'm sure more questions will arise as I read your inputs regarding this. I'm looking forward to here from some of you more experienced investors on this.

Thanks,

Nicholas

Most Popular Reply

User Stats

1,114
Posts
23
Votes
Eric Foster
  • Real Estate Investor
  • Portland, OR
23
Votes |
1,114
Posts
Eric Foster
  • Real Estate Investor
  • Portland, OR
Replied

When I sell… Personally I would not sell other than cash at closing, or on a lease with an option to purchase…

I do not give away control, title, or equitable interest in a property until they are paying me off.

I don’t want one of my buyers getting liens or control of my property by not paying their bills and getting judgments, filing for bankruptcy, getting a divorce, getting sued etc…

I do lease with an option to buy ONLY!

When I buy… That is a different story…

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