All Forum Posts by: Peter O.

@Peter O.. Yes very common here. I have bought and sold properties on a Land contract 

I have a lot of experience with land contracts - both buying and selling.  Let me know if I can help you in anyway.

@Peter O. Land contract is very common in Detroit. Having a large deposit is good and $20K is definitely a good deposit (not sure the value of the property though). I’ve bought before on land contract and I’m working on a land contract purchase now. If you want to sell anymore on LC let me know.

You prettt much get upgraded from Landlord to Lender.

@Peter O. Interesting, I'm from Detroit but live in Dallas now as well. I've done a couple of these with my properties when I lived there and still am overseeing the payouts until maturity. I would take as much as possible in down payment as you can get. In Detroit, these deals are very common so it's nothing out of the ordinary. I have never gone to court for defaulted payments/contract, but just keep in mind that it may cost you a pretty penny in recovering unpaid payments or trying to recoup the asset, especially given these houses are so low in value and lawyer fees can add up. One thing to definitely do is that in the contract you do not provide the title until all payments have been made, this is benefit to you since besides physically occupying the home they have no right to the home. I would not advise you to turn over the title, and then have you essentially act as a bank with a first lien position on the asset. You should still record this with the city so it is on record. Of course the contract should state they manage all capital expenses from date of contract execution, maintain all utilities in good standing, can lease/sublease and manage the rental, no illegal activities, must get permits if they require it, etc. Since taxes and water can be a lien (if unpaid) by the city, I pay those two directly. I just increased the total price/payments to account for this.