Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am just now adding Contract for Deed as a method for buyers to buy my house. My question is should I expect this to increase the buyer pool significantly? $100k duplex, 1 bedroom each unit, best suited for an owner-buyer who then occupies one unit and rents the other unit to make the payment+utilities. Having my Realtor add Contract for Deed in addition to traditional financing. Hoping my willingness to sell CFD will boost the potential buyer pool.
I don't think it will increase your pool that much - there are a lot of risks to buyers as well as sellers. Anyone who qualifies for a more conventional mortgage would be unlikely to pursue that approach and would you really want to hold the paper for a buyer who had questionable credit?
Some good general info here about the risks on both sides
Just be sure you understand all the ramifications of a Contract for Deed. But also understand that you will be dealing with a buyer with very bad credit, and quite possibly unable or unwilling to maintain the home, or do the permanent financing per the terms of the Contract for Deed.
1: Some owners want to do this for the cash flow. They feel they would rather have the payments, than all the cash. At today's interest rates from bank deposits, etc., they like the interest rate they can sell the home for. If one is careful who they sell to, then it can be a good safe cash flow stream.
2: The property is very difficult to finance, and this can happen for many reasons. In some cases, it makes very hard to sell property due to lack of financing, into a quite easy to sell property.
3: It attracts people that cannot qualify to buy with standard financing. Some of these people are a good risk, and some are very poor risks for the owner to take on. In this way, it will greatly increase the buyer pool.
Caution: If you go for owner financed, get a good down payment. Be careful to who you sell to.
You can get a little higher interest rate, than the banks charge for borderline buyers.
Decades in the business and have sold a lot of property with owner financing including some I owned. Often used it, when selling farms, ranches, and bare land.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
