Contract For Deed
Hello all 
i very new here so bare with me. I am going into a contact for deed no down payment, i am wondering is how does one get equity in this situation? and if i decided to sell for more then what i am buying the house at, is that the perfect situation 
Hi Doug,
I'm in the process of ending my contract this week and will close with about $48,000.00 in equity. We were on a 3 year deal and it just took a little longer but we also spent that time fixing it up and so on, My suggestion to you is if you know that you can sell it for more.....? and you don't really love the place/location then you will have equity in the place and you can use that to do a downpayment on another prop. Otherwise fullfil your contract and get out as quick as you can so you can get a mortgage in your own name. the name of the game in contracts is credit credit credit. so you don't need to pay the higher interest to the seller. Hope this helps.
OK heres the deal, or plan you might say. Its a 17 acre piece of land with two homes on it the first home is small but it rents for the amount of 400 a month and the second home is small also Mobile home 3 bedroom single wide. I will live in the Mobile home but will have to add a room to it no big deal. the rental will pay the contract and maybe i will add additional 400 into the contract or start building a house , i am a masonry contractor now and the rest of the work i can hire out . The piece of land i will be getting is a small set aside from a lager piece that is going to be developed into lots for homes. The property i am looking at is valued at 70tho and he will let me in at 58tho. unforitly i have terrible credit!! from my days of drinking but Ive been sober now for 11 years so am working on a nest egg real late in my life i am now 41 years old and not a pot to piss in lol, i started the masonry company last year and landed our first big job just this year and i am starting a new company in a few month that i know will also make money, i have no formal education just some high school but never finished, I live on a Indian reservation and this next company will deal with them on a product they will need for there homes they build and i can get this product below whole sale. anyway lot more then i intended to say but i need all the help i can get, very uneducated here but have great ideas.
Doug
Just some random thoughts ....
"It is valued at 70k" - how do you know it is valued at 70k?
There is almost no resell value in mobile homes so you are buying just the land. But if the one mobile home can make your payment then great.
Does your acreage have good access and can it be developed into lots?
hello bgrossnickle
The assessor was out to the property just the other day and this is what he had said. it is just the one mobile home the other is a stick home, there is good road access to the property.
Doug
opps sorry yes it can be developed into lots. me and the owner have talked bout that he is a good freind of mine.
Doug is the owner going to carry the note? for how long? how much down/anything? I think you said no cash, right.
I would see if you can find someone that has some money in CD's at the bank and give them a beter interest rate for 1-3 years on the money you need down to buy the house from the owner. Or see if you can find a buyer and do as you told me in the p.m. Either way you really should not use the mobile home as a selling point it is really not very valuable. Trust me I know and so do many others they are a box to lay your body down and the value of the older ones really don't carry any weight. So sorry to be blunt. Anyways when I bought my place I was in your shoes and I just told the guy I would give him at the time 9% interest and he was only getting 4-4.5% on his money and he didn't mind holding for 3 years that is good money well low and behold the market spiked and he made close to 50 grand off me and I still made my profits after a fixup and my family is happy with the house also. got Questions ?
Bigging
Well i am going to talk to him again today and get more details. i'll let you know what i deside to do. thanks every that responded.
Doug
Quote:
On 2004-03-03 10:18, Doug_G wrote:
Hello all <IMG SRC="images/forum/smilies/icon_smile.gif"> i very new here so bare with me. I am going into a contact for deed no down payment, i am wondering is how does one get equity in this situation? and if i decided to sell for more then what i am buying the house at, is that the perfect situation <IMG SRC="images/forum/smilies/icon_confused.gif">
Doug,
You should do a little more reading (books, etc).
Based on what I can tell from what you wrote, you are buying the property so all the normal ways to build equity apply (market rises, improvements you make, change of use, pay down the loan).
There is NEVER a perfect situation. There are many good deals when one does their homework.
John
John
Thanks i will do some reading like you said.
Doug