Financing
I have heard of a land contract. What is it and what type of scenerio would it work best for?
I have heard of a land contract. What is it and what type of scenerio would it work best for?
A land contract is where the buyer agrees to purchase real estate in installments. The buyer receives an interest in the property and, when the all required payments are done, the seller deeds the property to the buyer.
Times to use it:
When the property is offered below market; property is owned free and clear; when the buyer has cash for only a part of the down payment; buyer has poor credit; seller will finance but requires added security; seller will rent or sell.
Hope this helps.