Land Contract vs. "Subject To"....??? - Posted by Paul-WA

Posted by Jon on February 18, 2001 at 19:12:45:

Run your ads and the really motivated sellers are calling you…there will be no problem getting the deed! These guys want out!

When your dealing in the manner you guys were talking about it only causes much stress and grief! Crank up your buying machine , and things will be good


Land Contract vs. “Subject To”…??? - Posted by Paul-WA

Posted by Paul-WA on February 18, 2001 at 16:48:34:

I would really appreciate some help with understanding a couple of ETREMELY important Issues. I have 2 questions:

  1. As an investor, given the option, which method would be a more advantageous to buy a property…“Subject to” or Land Contract, and could you give me a detailed answer as to why…and I’ll never have to ask this question again.

2 .When you buy “Subject To”, and are holding property for, say L/P Investment, using a Land Trust will circumvent the “Due on Sale” issue, but how is that issue addressed with a Land Contract…or does it not come into play?

Thank you…looking forward to Atlanta: Are we there yet?

Re: Land Contract vs. - Posted by phil fernandez

Posted by phil fernandez on February 18, 2001 at 17:57:14:


I would prefer the Subject To deal cause I’d be getting the deed. With the Land Contracts or Contracts For Deed that I’ve seen, you don’t get the deed until you have successfully fulfilled your agreement with the seller. At that point you’d get the deed. Sure the deed would be in escrow with a 3rd party on a Contract, but I still like having the deed in my possession.

Of course many sellers are going to be reluctant to give you a deed with a Subject To, so it becomes a situation where I’d certainly take the Land Contract as long as the deed was placed in escrow.

The titling of the Land Contract could be handled the same way as that of a Subject To deal. With both you could have your seller deed the property into a land trust with himself as the trustee. And then give you the beneficial interest in the trust.