Posted by Scott (ATL) on March 14, 2001 at 18:58:54:
Ahh…I haven’t brushed up on land contracts or Agreement for Deed but I must be missing something. Typically you would write a note for the owner financing then write up a mortgage so the house would be used for note collateral. Correct? Now if you decide to do a land contract/AFD what is the advantage? In our case we wouldn’t own the home free and clear (not sure if this comes into the equation) so the bank would have the first mortgage and if we owner financed it we would create a 2nd mortgage I assume or do a AFD?
I guess I need to read up on land contracts. In our current situation my partner is mainly worried about his name securing the current mortgage. If the home (deed) is under our company name as well as insurance etc. then the liability is with the company. Yes, if anything went wrong as officers we could be named in a lawsuit but our LLC should protect our individual assets as long as all the owner financing or lease option paperwork is in order.
Thanks for all the feedback!