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Updated about 14 years ago,
Selling Contract for Deed vs Selling Note
Theoretical deal:
3/2 in South Carolina
I purchase this property, rehab, and resale with contract for Deed. Buyer puts down 5k and sign contract for deed of 65k. Comps support value of 70k. Nice working class neighborhood etc.
What is the interest for note buyers or others to buy this property. (I know the purchase would be at some discount to the remaining balance of the contract.)
Contract buyer would be actually buying home and assuming my position in the contract for deed. I see numerous benefits to this but also buyer would be closing on entire home and not just the note.
I would like to do contract for deed as opposed to straight owner financing so that I can refinance after the rehab to pull my money out to move on to next project but would also like the option to sell the contract to pull my profit after it is seasoned.
What are opinions on this and what are viable ways to accomplish this.