CFD Vs Land Contract - Whats The Difference?

I am a little confused as to the difference, can anyone expalin? Are either one similar to "seller financing"?

Thanks in advance.

Comments(6)

  • mfparks5th December, 2004

    same thing.. just different terminology

  • commercialking5th December, 2004

    exactly the same thing. This document is also sometimes called an Installment Agreement for Deed.

  • suntzu185th December, 2004

    Ok, thanks guys.....quick question though... If I have a mtg broker that can, more often than not ( not always) get a buyer qualified on a 95%ltv and I don't mind taking back a second for the 5% should I always go this route if I am trying to cash out? Of course this is assuming their is enough spread to do it and still reach my target margin. If so, what rate would I generally offer the second for and for how long?

    Thanks in advance.

    Suntzu18

  • mfparks8th December, 2004

    if your trying to cash out, id say its the route to go... If you want to cash flow for a couple of years and make a bigger spread on the back end, then the cfd is your alternate route,, as far as the 2nd id say maybe anywhere from 3-7 points above the first they got..

  • davehays8th December, 2004

    also called bond for title in Louisiana, and perhaps some other states....... same idea, however, with seller financing, the deed is transferred at closing, where with an installment sale, the deed is transferred after the contract has been satisfied

  • suntzu188th December, 2004

    Thanks guys. You are always helpful. Can you give an example of a potential Land Contract deal?

    Suntzu18

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