I don’t think you understand how a CFD or an amortizing loan works.
When you sell on a Contract, you become the bank. The buyer’s payment is interest (compound) and principal. In the begining the amount of principal reduction is VERY small probably less than the 100 dollar rent credit.
Yes you can get a larger down payment.
One of the biggest reasons for using a L/O instead of CFD is the time it takes to get someone out if they don’t pay. Simple eviction vs: foreclosure. You need to check the process in your area to see if this applies.
Best place to get help with a CFD is a title company or attorney. They do this every day and can save you headaches down the road trying to correct your mistakes.
All the best, Lyal
Wouldn’t it be always easier to fill a house via CFD seller financing than a lease option? Doesn’t the buyer get credited with all the payments made so he is building equity the entire time instead of just a 100mth credit as with a L/O. We would just keep the spread between the underlying mortgage and the CFD Terms. iT seems it would fill way easier.
If i was to buy sub to how would i structure a CFD sale. A larger down payment than with l/o, a higher Interest rate then the underlying mortgage amortized over the same number of years as the original loan but with a three year ballon for the balance to get financed and clear the underlying mortgage? How do i right up a CFD sale I’m in Michigan.