What Is A Contract For Deed?
WHAT IS A CONTRACT FOR DEED? – A contract for deed is an alternative financing agreement in
which the seller finances the sale of the property rather than a lender. As with traditional forms of
financing, the buyer takes possession of the home after the closing of the sale. When buying a home
through a contract for deed, the homebuyer agrees to pay the seller the purchase price over time with
interest in monthly installments.
WHO IS VSM HOLDINGS LLC? – The real estate holding entity of VSM Real Estate. It is owned by the
same owners of VSM Real Estate (A real estate management and brokerage company). The two principals
are Goran Vejzovic and Ryan Schroder. Both owners have over 10+ years of real estate experience,
excellent credit, and a passion for real estate investing.
COMMON REASONS TO SELL ON A CFD –
1. Market Value – Often a seller would like to do a traditional sale, but when they factor in the high
cost of selling a property (9% including a 6% brokerage commission and 3% contribution to
closing costs) there is no equity. When the existing mortgage balance is equal to market value, we
can mirror the terms of the financing to the existing financing and pay the mortgage directly.
2. Retirement Income – Some sellers have a home that is paid off and rather than selling and taking
it in one lump sum, they could look to sell it and receive their money plus interest spread over a
period of years. It’s a wise strategy for sellers who prefer to net more money on a debt free asset.
3. Security / Stability – Some owners will try their hand at renting the property only to find out that
its too much dealing with repairs and maintenance, tenant payment issues, and just the general
stress of being a landloard. We can effectively take all of the risk of the vacancy repairs and tenant
issues and pay a single reliable monthly payment to you.
RISKS OF A CFD – The risk that a seller has in a CFD is the person who is buying the property will stop
making their payments. Luckily for a seller, the process of taking possession back of the property is as
simple as filing a dissolution of the CFD if payments are not made for 60 days and the Sheriff will help
you to get your property back. Unlike a bank mortgage, the process does not have a long redemption
period or difficult processes.
BENEFITS OF A CFD –
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