Land Contracts?
I recently bought a house to rent out but was also wondering about selling it on a land contract. Questions: What is the average term for a land contract? Do people do 30 yr land contracts? What if they want to move or sell the house before that? Or are they usually short term and then the people go out and get other financing?
thanks
Nick
Yes people do 30 year land contracts all the time. In fact when I was in grad school one of my classmates was a woman in her 50's who had returned to school after a divorce. She was still collecting monthly payments on a bunch of 30 year land contracts her dad had done before he died.
If they wish to sell they can always do it subject to the existing land contract or they can sell conventionally and pay off the contract. Land Contracts rarely have prepayment penalties but it can happen.
What is avg percent in MI?
thanks
Nick