Contract for Deed as Note Investing?

[Charley Tauer]

Beginner in the note investing space here. I understand a contract for deed as seller financing, but how would that work as a note holder? I see them often on Paperstac and wasn't sure how that changed the process, yield etc as the holder? 

[Chris Seveney]

Quote from @Charley Tauer:

Beginner in the note investing space here. I understand a contract for deed as seller financing, but how would that work as a note holder? I see them often on Paperstac and wasn't sure how that changed the process, yield etc as the holder? 

Contract for Deeds have benefits and pitfalls. The difference between a contract for deed and a mortgage is who holds title to the property. With a contract for deed the lender holds title to the property until the loan is paid off then title is transferred to the borrower (similar to how a car loan works).

The pitfall is if the borrower does not take care of the property, the fines will go against your entity.

Some benefits may be it is easier to get the property back vs. a foreclosure (but varies depending on state law).