Contract For Deed

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John,

Could you please explain to me what exactly a CFD is? You said this is the only way you sell your properties, what are your typical requirments for a CFD scenario.

Thanks

Steve

Comments(2)

  • JohnLocke22nd June, 2003

    qcumber,

    Glad to meet you.

    Contract for Deed, Contract for Sale, Agreement for Sale are different names used in various locations depending on the State you live in there may be more but the meaning is the same.

    When you sell a property on Contract for Deed, you are saying to your buyer you will get the Deed when you live up to the terms of the contract. I usually have my buyers re-finance in two years so at that time they would have the Deed transferred to them when they pay off my Sellers loan.

    The seller is happy the loan goes out of his name, I am happy because I always add a percentage of appreciation $$$ to the back of the existing loan that is due in the two year period.

    I take the property Subject To the existing loan staying in place this give me the opportunity to offer my buyers existing financing, however I do get the Deed from the Seller.

    I find this method rather than a Lease Option gives me full control of the property, more down payment and no landlord chores. In the majority of cases my buyers improve the property.

    John $Cash$ Locke

  • pbodys23rd June, 2003

    Hey John,

    Is this what is meant by getting the deed?

    A "Contract for Deed?"

    So they're not actually deeding you the prop. at closing?

    Is this correct?

    Clif

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