Can Someone Explain The Dynamics In A Land Contract For Deed Transaction?
I need to know what it takes to excecute such a transaction from what it is about, the legal forms involved. Also I need someone to just give me a summary of the process in general.
Please How is this different from putting the home into a land trust?
To further emphasize what mtnwizard said, just make sure you know your state laws say about CFDs. There are often very specific requirements regarding financial disclosures, reporting to the buyers, etc. In some states, there are even stipulations on the type of existing loan you can have on the property.
My stragegy for getting houses will be to get the houses on a lease option from the buyer for a period of time (3-5 years) and then turning around and handing over the property on a rent-to-own basis to a tenant buyer for a shoter period of time and at a high price (1-2 years). Given my strategy which method will be better land trusts or land contracts?
What do you guys suggests?
Correct, mcole. If all you have with the Seller is a L/O, then all you can do is L/O it to a Buyer. If you have a CFD, then you can do either. If you have the Deed, you can do anything (including an AITD, affectionately called a "wrap"
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"A deal is only as good as the quality of your Contracts." --Me[ Edited by LeaseOptionKing on Date 12/15/2006 ]
kci411,
A little help on the link.
http://www.wcnc.com/news/topstories/stories/wcnc-112806-al-home_solutions.345e71fd.html
John $Cash$ Locke
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Thanks for the link, John Locke.
If this guy did all that was alleged, he deserves severe punishment, including whatever jail time for fraud he may face.
He really has to be STUPID, though! To answer an internal email sent to him, that indicated customers were alarmed with the non-payment of their mortgages, with a "f**k them" two-word response will sway ANY jury with his intent to defraud.
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J,
Yes, I put in my ideas about the pending legislation in NC and was also contacted on this board by the Chief Legal Counsel of the NC real estate commission.
http://www.thecreativeinvestor.com/residential/modules.php?name=Articles&file=article&articleid=623
Here is a link ot the pending bill that the NC legislators want to pass.
http://www.ncleg.net/Sessions/2005/Bills/House/HTML/H725v2.html
I believe what kci411 is saying is this is more fuel for the fire that could help shut down creative investing in NC and could in effect filter to other states. So as an investor you can see this is important to this poster.
John $Cash$ Locke
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LOL amazing! Even as the AG is advising people not to sell their homes to a land trust, the wiz is still pitching
I am not up much on the law, but is the nc ag saying that it is in fact illegal to put property into a trust for the purposes of hiding it from the lender?
Is he not indicating that the we buy houses people are scam artist.
I hope not.
I have found that no person going into foreclosure gives a rip about the due on sale clause, but the person that is giving you a deposit to buy the property L/O is not as easy of a sale. I know I could hide it but I will not.
I have lost several dollars (to me)to holding cost because the buyer did not agree with it. And can you really blame them for being a little sceptical of that clause. No matter what you tell them off of the record.
Has anyone else lost a deposit due to the disclosure?
Hey Wiz... Is that legal advice you are giving?
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What a shock, a discussion of fraud turns into another place for da Wiz to promote land trusts.