Land contract
Land contract
Advanced real estate in the US
A little secret that can do all of us a lot, a lot of money.
This house we bought to the customer at 2016 at $ 95000
The property is on 19102 colorado dt Roseville Mi Street
If you get into it, you can see it went out for sale two or three days ago at 150000 $
But we do not sell it at a regular sale.
The reason we are interested in selling the property is to experiment with this type of transaction:
WE SELL IT IN LAND CONTRACT
What does that mean?
That the owner puts the property up for sale but actually becomes the buyer’s financing bank. The buyer will pay a down payment of 20%, pay for a minimum of 6 years (the law in Michigan) and up to 30 a year (as much as possible according to the law) regular monthly payments, and finally complete one large payment for the transaction.
Once the buyer buys the property, will pay 20%, it will start to pay each month principal and interest (like Spitzer board) for the assumption of 6 years.
Here are the bonuses:
1. Every year the seller will earn on the balance of principal 9% interest!
For 6 years I will earn approximately 45-50%.
2. All property expenses (management, property taxes, insurance repairs etc.) apply to the purchaser.
3. If the buyer does not meet the terms of the transaction, whether it is in the first month, the seventh, or after 6 years paid by the fund and interest, and reached the last payment, and did not meet it ,,, the property, returns to the ownership of the seller !!
LAND CONTRACT
Good for beginning investors in the US who have low equity
It is also good for people who want to buy property but the bank is not accompanying them.
That's how the seller becomes the bank. He accompanies the lender. He has no headache.
I need only the management company that will take care of collecting from the purchaser (if he does not pay as stated he will lose all of his investment) which is relatively easy,
And you have to manage books.
This house will be sold at $ 150000
Will put the investor after 6 years as 205000 $
45% net profit minimum without headaches
With lots of confidence
All by law
And there is a significant chance that the property will be returned to its own !!!
Anyone interested to start exercising
But wants to enjoy a fantastic, solid return, it's a wonderful way.
Let everyone have a happy Chanukah
Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum):
http://bit.ly/2InrA9R
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
I read the post and that's because I've been thinking about it lately.
I have a question:
If the tenant who purchases from you the property does not pay you should contact him and enter the forclosour process
This is a long and expensive process, so if it happens after a few payments and the buyer leaves a destroyed property then there is a big loss here.
I would be happy if you could specify what happens in such a situation.
Shai Bar
Hi Shay, Is this concept more profitable than renting the house in a period of six years and then selling?
Osher Ben-David
Jacob Sapoj
Great post .. Thank you
Yes, too
I would love to participate in the competition
indeed. Also owners finance
It's also called Owners Finance, is not it?
אהלן ליאור…אז אם כבר נתת לי במה. אני רוכש החל מ 2011 נדלן בארה”ב, עשיתי סיבוב לא קצר ( ומאד יקר ) של רכישות נדלן דרך חברות ישראליות ומ 2013 התחלתי לרכוש ישירות ממוכרים אמריקאים במישיגן. אנחנו מתמקדים במטרופולין של דטרויט . אנו מלווים משקיעים לרכישה ממוכרים אמריקאים במטרה למצוא נכסים במיקומים טובים במחירי שוק או פחות ובמטרה להחזיק לטווח ארוך לטובת תשואה. תודה על הבמה. יש לנו המון מידע שנשמח לחלוק כאן אתכם .
By the way Shai Yakiri, your property looks like a perfect candidate for our real estate beauty contest - "the best real estate of the month". You provided an interesting analysis of the property and at the moment technically at least you are the winner because you are the first 🙂 The prize is the publication of your business name and contact details - definitely a worthwhile prize, and of course world fame forever. Want to join the competition? ???
Thank you Shai for sharing and happy holiday. Definitely an interesting and innovative way and we will be happy to learn more. Be strong and courageous!
Not my friend. Do not buy at 9% interest. It's slaughter. Try to find methods (and there is) to purchase a first property if you do not have enough equity. Try to find a partner who will pay most or all of the money and you will manage the business for a percentage of the money
Thank you very much dear man.
Do you recommend using this method for those looking for the first property?