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FAQ

What is the difference between a Contract for Deed and Land Contract?

How does a Contract for Deed / Land Contract differ from a traditional mortgage?

How does a Contract for Deed / Land Contract work?

What are the benefits of choosing a Contract for Deed / Land Contract?

Benefits include flexible qualification criteria, faster closing times, customized terms, and immediate possession of the property. It’s a good option for those with credit issues, self-employment, or other financial constraints.

Who is a good candidate for a Contract for Deed / Land Contract?

What happens if I miss a payment?

Can I sell the property before completing the Contract for Deed / Land Contract?

Yes, but the terms and conditions of your contract and state laws will dictate how this can be done. You may need the seller’s permission, and the outstanding balance on the contract must typically be settled.

Are there any tax implications with a Contract for Deed / Land Contract?

Both buyers and sellers may face specific tax implications. Buyers may be able to deduct interest payments, and sellers might have to report the income differently. It’s advisable to consult with a tax professional to understand your specific situation.

Can I make extra payments or pay off the contract early?

Most Contract for Deed / Land Contract agreements allow for extra payments or early payoff, but it’s essential to check your specific contract terms for any prepayment penalties or conditions.

What types of properties can be purchased with a Contract for Deed / Land Contract?

A Contract for Deed / Land Contract can be used to purchase various types of properties, including single-family homes, multi-family units, commercial properties, and investment properties. The key is finding a seller willing to offer this financing option.

How do I start the process of buying a home with a Contract for Deed / Land Contract?

Begin by contacting our team for a consultation. We’ll discuss your financial situation, help you find a suitable property, and guide you through negotiating the contract terms with the seller. Our goal is to make the process as smooth and straightforward as possible.

What is a Contract for Deed / Land Contract and how does it benefit my clients?

How does a Contract for Deed / Land Contract affect my commission?

What types of clients should I refer to Contract for Deed / Land Contract, LLC?

The short answer is anyone.

But typical clients who choose a Contract For Deed include those who have:

  • Limited credit or credit issues
  • High debt-to-income ratios
  • Self-employment or inconsistent income
  • Recent bankruptcies or foreclosures
  • New jobs or lack of a 2-year work history
  • Recently entered the country
  • Need for quick closing dates or alternative financing options

How quickly can a Contract for Deed / Land Contract transaction close?

What are the benefits of partnering with Contract for Deed / Land Contract, LLC?

How do I get started with Contract for Deed / Land Contract, LLC?

Simply contact our team to discuss potential clients and transactions. We’ll provide all the necessary information and support to facilitate successful Contract for Deed / Land Contract agreements, ensuring a smooth process for both you and your clients.

Are there any risks involved with a Contract for Deed / Land Contract?

While there are risks, such as the buyer defaulting on payments, our team is experienced in structuring contracts that protect both the seller and buyer. We also provide comprehensive support to navigate any potential issues that may arise.

Can investment properties be financed through a Contract for Deed / Land Contract?

Yes, Contract for Deed / Land Contract agreements can be used for various types of properties, including single-family homes, multi-family units, and investment properties, providing flexibility for different client needs.

How does a Contract for Deed / Land Contract help clients who have been declined by traditional lenders?

It offers an alternative by allowing buyers to negotiate directly with the seller, bypassing the strict requirements of traditional lenders. This flexibility can help clients with unique financial situations secure a home.

What role do I play in a Contract for Deed / Land Contract transaction?

As a real estate agent, you’ll facilitate the connection between the buyer and seller, help negotiate terms, and ensure all parties understand the agreement. Our team will support you throughout the process to ensure a successful transaction.

Meet our Wisconsin & Minnesota-based Contract for Deed LLC Team