contract for deeds
TRANSCRIPT
An old solution to today’s real estate
problems
Lack of Lending
Real Estate Troubles
- Sellers -
Lack of Lending
Appraisal problems
Real Estate Troubles
- Sellers -
Lack of Lending
Appraisal problems
Surplus properties
for sale
Real Estate Troubles
- Sellers -
Lack of Credit
Real Estate Troubles
- Buyers -
Lack of Credit
Always have lived in a home
Real Estate Troubles
- Buyers -
Lack of Credit
Always have lived in a home
Many properties for sale are tied
to the uncertainties of a short sale or foreclosures
Real Estate Troubles
- Buyers -
Expands Pool of Buyers
• Many potential Buyers have bad credit due to the real estate and economic collapse.
Contract for
Deed
Advantages
Expands Pool of Buyers • Many potential Buyers have bad
credit due to the real estate and economic collapse.
No Lender is Involved
• Allows Seller to Determine Credit Worthiness of Buyer
Contract for
Deed
Advantages
Expands Pool of Buyers
• Many potential Buyers have bad credit due to the real estate and economic collapse.
No Lender is Involved
• Allows Seller to Determine Credit Worthiness of Buyer
Don’t Have to Have Appraisal
• Buyer and Seller Agree to Value
Contract for
Deed
Advantages
Expands Pool of Buyers
• Many potential Buyers have bad credit due to the real estate and economic collapse.
No Lender is Involved
• Allows Seller to Determine Credit Worthiness of Buyer
Don’t Have to Have
Appraisal
• Buyer and Seller Agree to Value
Bad Credit Doesn’t Stop a
Purchase
• Only Seller has to approve buyers credit worthiness
Contract for
Deed
Advantages
Market property
A vital part of the team
Market property
Help find “target” buyers
A vital part of the team
Work with attorney in drafting purchase agreement or counter
Market property
Help find “target” buyers
A vital part of the team
Explain advantage and risks to client
A vital part of the team
Explain advantage and risks to client
Explain options to minimize risk
A vital part of the team
Work with real estate agent in drafting purchase agreement or counter
Explain advantage and risks to client
Explain options to minimize risk
A vital part of the team
Work with real estate agent in drafting purchase agreement or counter
Explain advantage and risks to client
Explain options to minimize risk
A vital part of the team
Review Title Work and Closing
Documents (for buyers)
Work with real estate agent in drafting purchase agreement or counter
Explain advantage and risks to client
Explain options to minimize risk
A vital part of the team
Review Title Work and Closing
Documents (for buyers)
Draft Contract for Deed and
closing Documents (for sellers)
Analyze Sellers Financial Position to Offer Contract for Deed
A vital part of the team
Analyze Sellers Financial Position to Offer Contract for Deed
Help Structure Payment Terms
A vital part of the team
Analyze How Contract for Deed Will Impact Sellers Tax Position
A vital part of the team
Analyze How Contract for Deed Will Impact Sellers Tax Position
Help Structure Payment Terms To Maximize Tax Position
A vital part of the team
Seller Flow Chart
Step One: Is Contract for Deed
Right for You?
This chart shows
the flow of a
Contract for Deed
transaction from
a sellers
prospective.
Seller Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
• Have Contract for Deed drafted
This chart shows
the flow of a
Contract for Deed
transaction from
a sellers
prospective.
Seller Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
• Have Contract for Deed drafted
Step 2: Find Buyer
This chart shows
the flow of a
Contract for Deed
transaction from
a sellers
prospective.
Seller Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
• Have Contract for Deed drafted
Step 2: Find Buyer
• Negotiate purchase agreement terms, including all contract for deed terms.
• Present Purchase Agreement, including a copy of the Contract for Deed.
This chart shows
the flow of a
Contract for Deed
transaction from
a sellers
prospective.
Seller Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
• Have Contract for Deed drafted
Step 2: Find Buyer
• Negotiate purchase agreement terms, including all contract for deed terms.
• Present Purchase Agreement, including a copy of the Contract for Deed.
Step 3: Close
This chart shows
the flow of a
Contract for Deed
transaction from
a sellers
prospective.
Seller Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
• Have Contract for Deed drafted
Step 2: Find Buyer
• Negotiate purchase agreement terms, including all contract for deed terms.
• Present Purchase Agreement, including a copy of the Contract for Deed.
Step 3: Close
• Sign Contract for Deed and closing documents.
This chart shows
the flow of a
Contract for Deed
transaction from
a sellers
prospective.
Buyer Flow Chart
Step One: Is Contract for Deed
Right for You?
This chart shows
the flow of a
Contract for Deed
transaction from
a buyers
prospective.
Buyer Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
This chart shows
the flow of a
Contract for Deed
transaction from
a buyers
prospective.
Buyer Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
Step 2: Find
Property
This chart shows
the flow of a
Contract for Deed
transaction from
a buyers
prospective.
Buyer Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
Step 2: Find
Property
• Negotiate purchase agreement terms, including all contract for deed terms.
• Present Purchase Agreement, including a copy of the Contract for Deed.
This chart shows
the flow of a
Contract for Deed
transaction from
a buyers
prospective.
Buyer Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
Step 2: Find
Property
• Negotiate purchase agreement terms, including all contract for deed terms.
• Present Purchase Agreement, including a copy of the Contract for Deed.
Step 3: Close
This chart shows
the flow of a
Contract for Deed
transaction from
a buyers
prospective.
Buyer Flow Chart
Step One: Is Contract for Deed
Right for You?
• Consult with attorney, real estate agent, financial planner and CPA.
Step 2: Find
Property
• Negotiate purchase agreement terms, including all contract for deed terms.
• Present Purchase Agreement, including a copy of the Contract for Deed.
Step 3: Close
• Have title work reviewed
• Sign Contract for Deed & closing documents
This chart shows
the flow of a
Contract for Deed
transaction from
a buyers
prospective.
Not all contract for deeds are the same! Hire an attorney to draft one that favors and protects you.
Not all contract for deeds are the same! Hire an attorney to draft one that favors and protects you.
Skin in the game. The greater the down payment, the less risk of buyer default.
Not all contract for deeds are the same! Hire an attorney to draft one that favors and protects you.
Skin in the game. The greater the down payment, the less risk of buyer default.
Not all buyers are the same. Screen the buyer to make sure that you are willing to take a risk on them.
Not all contract for deeds are the same! Hire an attorney to draft one that favors and protects you.
Not all contract for deeds are the same! Hire an attorney to draft one that favors and protects you.
Pay as little down as possible.
Not all contract for deeds are the same! Hire an attorney to draft one that favors and protects you.
Pay as little down as possible.
Obtain Owners Title Policy With Proper Coverage.
When done
properly, using a
Contract for Deed to
sell or buy property
can be a “Win-Win”
for sellers and
Buyers.
When done not done
properly, using a
Contract for Deed to
sell or buy property
can be end in
disaster. Both
buyers and sellers
have to take all steps
necessary to protect
their positions
Nash Law Firm, PLLC
2175 Northdale Blvd. NW,
Coon Rapids, MN 55433
(763) 860-4279
We are happy to help you!