Buying on land contract...How to? - Posted by Joel

Posted by Randy on October 08, 2003 at 16:49:58:

The Land Contract needs to be created by an Attorney, (yours or hers) an Escrow agent or someone familiar with the process.

Yes you do get the Tax benefits.

Yes it is recorded.

As for calming the son?s concerns? How good of a sales person are you? It is all a matter of solving the seller?s problem (she moving) and personal trust. Can you convince him/her you will make the payments and fulfill the contract?

Buying on land contract…How to? - Posted by Joel

Posted by Joel on October 08, 2003 at 16:28:07:

I am looking at a nice duplex that I would live in. Its paid off and the woman is going into an assisted living building.

My idea to help us both out is to do a land contract, however, I have never done one of these before and I would like to know the pitfalls.

I can come up with 5% down (building is selling for $260K) and I was thinking of asking for a land contract @ 4% for 5 years.

Would I make payments directly to the seller for the 5 years?

Do I get the tax benefits?

Do I need to record it somewhere…I read somewhere that some guys try to weasle out of signing over the deed at the end of the contract.

Who usually draws these things up?

What questions/concerns do sellers usually have with these things. There is a realtor in place and the son is kind of handling the selling of this thing so Im sure he would be a little nervous about this whole arrangement…how can I calm his nerves (offer him a cup of tea with honey maybe :slight_smile:

Anyhow, any help you can offer would be greatly appreciated!

Thanks -