There are owners who would prefer to sell on a contract for deed. And, I have handled many of these sellers as has one of my partners.
We specialize in this area because of our many transactions for sellers, primarily, and buyers, in limited areas.
A contract for deed can be a position that a seller would find attractive for several reasons:
First, the ability to finance a sale means that the seller owns the land outright with no obligation to a mortgagee, or that the mortgagee will allow the sale with proceeds to be directed to them first and the seller after the mortgage has been satisfied.
Second, the seller would get payments over a prorated basis, giving the seller an opportunity to pay taxes on any financial gain over several years and possibly offset those gains with losses from other investments.
Third, the seller would keep control and ownership of the property regardless of any payments made by the buyer if the buyer fails to perform, if the contract is written in the interests of the seller….and that is where we come in!
Enter, realtor to the contract for deed seller.
We write contracts that keep the seller in control over the property. We keep the seller responsible for insurance, taxes and any and all financing on the property. The buyer(s) pay(s) the seller for taxes, insurance, etc. and make(s) payments for the number of years that the seller deems is most financially feasible and advantageous to him or her or them.
This way, the seller is not in a position of potential loss. The taxes will be paid, the insurance is paid (with the seller as the insured), and nothing is in jeopardy with the exception of a possible eviction of the buyer if non-payment becomes an issue.
We also work with the seller to ascertain that they would enjoy a 20 percent return on investment (or more) every year until the buyer(s) complete(s) the transaction, close(s) on the property and transfer(s) tax and insurance obligations to himself, herself or themselves.
If this sounds as if it would be something you would like to consider, call me today. Or you can contact Suzanne McLaughlin at 763-487-1870, too, to talk to one or both of us about listing your property.
This is a great way to sell with a smaller financial gains tax on the property.
Give us a call!
Check it out, and give us a call.