What vehicle should be use: L/C, Wraps, or Contract for deed, and what is the difference?
L/C and Contract for Deed are different terms for the same type of transaction. You owner finance but hold the deed until you’re paid off. Wraps are just you wrapping your owner financing around any loan you may have on the property. If you buy for $50,000 at 10% then you “wrap” the loan when you owner finance buy selling at $60,000 at 12%.
The name of an attorney who handles this kind of contract.
Shop your attorneys in your area. There are a million real estate attorneys. Find one you like.
How is interest paid calculated and reported for IRS purposes?
Ask your accountant, but, if you owner finance you would provide a form to your buyer for interest he paid during the year.
Where can I get the forms needed?
Bronchick’s courses have good forms. A lot of his forms are listed on his website at legalwiz.com
I am looking for long-term residual income from real estate w/o the hassle of renters and maintenance (I have some multi-family units already). I plan to buy single family houses, then I want to be the bank (I love the sound of that!) by offering wrap mortgages, contract for deed or land contract to buyers with less than perfect credit. I have looked for basic information to get started but I haven’t been successful. If you can give me the name of a book(s), or a course(s),or a person that can provide the information, that would be great. I live in the Atlanta area. Things I need to know:
What vehicle should be use: L/C, Wraps, or Contract for deed, and what is the difference?
The name of an attorney who handles this kind of contract.
How is interest paid calculated and reported for IRS purposes?