 Land contract (by carl [OH]) Dec 4, 2014 3:18 PM
 Land contract (by BRAD 20,000 [IN]) Dec 4, 2014 11:59 PM
Land contract (by Shark [MI]) Dec 7, 2014 5:53 PM
Land contract (by carl [OH]) Dec 7, 2014 6:00 PM
Land contract (by Shark [MI]) Dec 7, 2014 7:29 PM
Land contract (by carl [OH]) Posted on: Dec 4, 2014 3:18 PM
Message:
State Specific Question About: OHIO (OH)
good ideal"VEE"!!!how do I do a"Land Contract"for a 2family house@on a straight deal 49k,but a Land Contract 59k,tenant is telling me he has 25k.How do I do this"Legally" whats the down/payment requirement,terms for 10-20yrs, documentation,ext....?? --172.11.xx.xxx |
Land contract (by BRAD 20,000 [IN]) Posted on: Dec 4, 2014 11:59 PM
Message:
Carl,
I don't know all the Ohio land contract laws, but overall, SELLING on LC is dangerous.
Consider lease with option to buy. Gives the buyer the same thing but does not increase your liability exposure.
-Brad --75.70.xxx.xx |
Land contract (by Shark [MI]) Posted on: Dec 7, 2014 5:53 PM
Message:
I have purchased several rental homes and sold two personal properties on Land Contract. Absolutely no problems + collecting good interest rates on the one's I sold - 7.25% and 7%. Both parties would have had problems qualifying for a conventional loan.
When I sell my rentals in 10 years or so I'm going to try to sell ALL on LC as I will double the amount I collect on the sale over time!
In Michigan land contracts seem to be fairly common, but not often done. Not sure about Ohio! I know that different States have different terminology. Seller financing, purchase money mortgage, seller mortgage, etc, are all terms I've heard. The concept is always the same....it's just like any other sale except that the seller provides the loan instead of a bank. And the seller collects the interest on the loan which is secured by the property. If they stop paying you foreclose. A more time consuming process than rental eviction.
There is certainly a risk with these deals, but the income is very, very good. I screen even more thoroughly than with rentals. The other thing I love about them is that all terms are negotiable. Length of contract, balloon or pay in full, interest rate, monthly payment, purchase price, down payment, etc.
As the seller you set the terms just as you would the price. Purchaser may negotiate but you can always say no. --68.43.xxx.xx |
Land contract (by carl [OH]) Posted on: Dec 7, 2014 6:00 PM
Message:
what about water&sewage&property taxes is that negotiable --172.11.xx.xxx |
Land contract (by Shark [MI]) Posted on: Dec 7, 2014 7:29 PM
Message:
Buyer pays all of that. How it's done is up to the seller. You can have the buyer make tax payments to you just like they would to a bank with the money going into "escrow" and then you paying the taxes. That way you know they are paid.
You as seller would want them to carry homeowners insurance. You can have yourself listed as "additional insured" on the property and tell the buyer to have a paid receipt sent to you every year.
I was just talking to a friend about selling a house that he owns free and clear on LC. He wanted to retain use of an outbuilding on the property for several years. That could be accomplished in a LC too.
Of course an attorney should draw up the contract and make sure that all is in accordance with Ohio laws.
One more task is for seller to execute a deed to be placed in escrow. It will be released to buyer when the note is paid in full. That way the buyer is covered in case something would happen to you. --68.43.xxx.xx |
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