Posted by Vic on April 08, 2000 at 20:07:55:
Philip,
For what it’s worth, I was talking to a real estate attny. about this the other day. The attny. said that I’d be better off doing a land contract cuz I’d be more in control of the property. With that stated, I still like the idea of doing L/O’s because you can avoid the closing costs of a land contract plus you won’t get a 1099 on the transaction (I think this is correct, but if not, please let me know.) With a L/O you also don’t have to be bothered with getting your own liability ins, fire ins., etc. You just have to make sure the seller has it. I guess you could also require the tennant to carry renter’s ins. if need be.
I imagine your liablity is also much less on a L/O, and also you won’t be stuck with expensive repairs. Anyway, as I understand things, these are a few of the benefits of doing a L/O. I’d like to be hear about some others that I might be missing though.
Vic