From what I have seen here some make $ from contracts for deed. I just want to sell and move on. The terms are 19 grand down and a 2 year ballon along with monthly payment and 7.5 interest. It has me worried that they could default and get ugly. But that's a the risks I guess. I have been told that I should consult a lawyer on top of the realtor. Too make sure all the paper work is done right. Any thoughts --any other concerns I should look out for?

Thanks

1) Yes, defintlly consult a lawyer on top of the realtor if you choose to do this

2) I would NOT recommend you do this. You said it yourself, you want to sell and move on. Find someone who will buy it from your outright. All money down, no contract for deed stuff. They are out there, keep looking.

I should have added that I have 2 homes on the property. So no lender will do a conventional loan. I have researched this and I have had problems refinacing it. Had to go to Agstar at a higher interest rate. I am told that after one year they can get financing because of living there. Worries me though still.

Yes there are risks with you playing banker for the buyer. What is the ratio of the down payment to the sales price? The greater % of down, the lower the risk. Check out the buyer as to credit, income, assets just like a bank would. There are legitimate reasons that may prevent a person from getting a loan (such as being self employed for too short a time). If there is an underlying mortgage that will not be paid off, a Contract for Deed could trigger a Due on Sale Clause. If you hire an attorney, be sure to get a Real Estate Attorney, and not some ambulance chaser. I have seen poorly written purchase contracts written by lawyers, that a 14 year old idiot could have surpassed. If the subject property is an investment, you will spread out your capital gains. I cannot understand why you were unable to secure financing for the property. FNMA and FHLMC allow up to 4 units for conforming loans.

19000 down---230,000 total 7.5% interest 2yr deal with ballon... I just so have a good friend who just had a contract for deed go bad. He has a good Attorney and he turned me on to him and he looks to know his stuff...

I am told I will only get a social # but can only see a credit score..

I should add the are suppost to be preapproved through ColdWell banker.

It sounds like the buyer is trying to hide something from you, If he expects you to be the bank, he must provide the information that you need to make an informed decision. If he won't provide what is needed, I would tell him to take a hike. I did a search on Coldwell Banker, and just managed to find their Real Estate Brokerage services. If this guy had a Realtor "pre-qualify" him, that is worthless.

OK, first if you have two houses on one property, are you selling both houses are just one?

If just one, you are going to have to subdivide the property anayway.

There is no reason a bank will not loan money on any type of property if its value is OK and the persons credit is good.

next the majority of contract for deeds end up with the person taking the property back, I have sold the same house about 4 times in the past 7 years. It is designed that way. You sell to people who can't afford or have too bad of credit to get a real loan, and you sell your house for a price too high.

You make your money in the down payment each time you sell.

If you want to sell and move on, you merely list with a realitor and sell the house to a buyer who gets a loan.

1. if they could lean the money in one year of him living there, they could loan the money now if his credit was good enough, that shows it is not the propety but the lender

2. prequality does not mean anything, it only means a realitor believes they can find a lender even if it is a high risk one

3. 7.5 interest is not high enough for your risk, that is only a percent over regular , I would say that on a contract for deed you need to be closer to 10 percent

and you are not even getting 10 perecnt down, Close your eyes and see a house with the furance and air unit missing, every window broken and holes in most of the walls and all the carpet damaged.
Then you have the picture of about 80 percent of all the contract for deed property when the owner comes back to take possession of it.