Buying Properties On A Land Contract or Contract For Deed

Yesterday, I shared with you a download about buying houses Subject To as part of a series on Strategies For Investing In Real Estate Without You Getting New Conventional Financing (links provided for our Real Estate Investor Bronze Members who are logged in). Today, I am moving forward with the next item on that list: buying properties on a land contract or on a contract for deed.

Unlike buying houses Subject To where you are getting the deed to the property up front and just making payments on the seller’s existing financing, when buying on a contract for deed, you are agreeing to make the seller payments and, if you keep your agreement, the seller agrees to give you the deed to the property after a specified period of time. This is usually when you’ve paid for the house in full.

By having the seller accept payments for the house, you avoid having to get a new loan from the bank. Some sellers will allow you to do this when they still have financing on the property while others will do it only if they do not have any financing on the property.

Different parts of the country call this process different things, so you will want to find out what it is called in your area.

Until my next post,

James

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