All Forum Posts by: Account Closed

One other thing, expenses in the linked property were calculated at 30%. Some properties have less expenses. I usually use 45% as standard when you factor in management (if you have to hire someone), maintenance, vacancy, taxes, insurance.

Have you ran the numbers on it? I would offer $1.2M max in order to get the margins properly.

Also, the property in the link is multiple buildings. There are lenders that will do this as one loan but it could complicate things.

@James Wootton

Something like that. It wouldn't be secured by real estate, kind of like a personal loan from seller to buyer using the purchase money.

I was thinking it should be added in a separate agreement to the purchase contract

Thanks @Rob K. I had thought so too.

It would be held by a title company, but I think it unnecessary and somewhat risky.

Hi all,

I recently purchased a property on a land contract. The title/escrow company has asked me (buyer) to sign a quitclaim deed to keep on file (in case of default).

Is this common practice for buying on a land contract?

7 years is a long time.

Luck is when preparation meets opportunity.

So yes, your goals are possible. If you don't have money or credit, I would suggest becoming an ally with someone who does.

Overcome resistance with persistance.

Some lenders don't like seller financing because they don't want other liens on the property, but an unsecured note won't result in a lien.

Capital is capital.

You can use your own money (which takes longer) or leverage (I suggest educating yourself and being sharp) or a combination of the two.

Exactly @Robert Brubaker

It helps if you know how to market on the internet, especially if you are in an urban area.

Some people put a lot of stock into yelp reviews, etc.

It looks good when you have 5 stars!

Also it is thoughtful to give your tenants an incentive to leave a yelp review! Pay them for the time it takes them to log on and leave a review. $10-$20 one time off their rent is a small cost to you, but if you have lots of tenants leaving you positive reviews, it is free advertising!

Get the seller to finance on a land contract with a 1-2 year balloon and 10% or less down.