Tuesday, January 8, 2013

Contract for deeds MN & information listings-blog


CONTRACT FOR DEED HOMES
Usually sellers offer a contract for deed when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price.
Contract for deed homes in Minnesota can be a useful tool in a tight credit market. It allows sellers to move a home faster and get a sizable return on the investment. Buyers benefit from less qualifying criteria and down payment requirements- flexible rates, May qualify for cd terms on a home that otherwise might be out of reach.
Sellers willing to take on the role of MN land contract financier represent only a small fraction of all sellers. Why you say because most homeowners want to cash out on their property than become a bank for a few years. We have access to 100s of owners willing to offer contract for deeds on their house-condo-town homes-MN lake homes-cabins-New construction-Hobby farm-single family Real Estate-invetments-lots-land-lofts-lakeshore.
How do I qualify for a contract for deed home in Minnesota?
Our process is pretty simple. Typically sellers will want around 10% down of the sale price to enter into a land contract with the purchaser. The owner will finance the real estate for around 3-5 years with a rate of around 6%-7%.
Your average homeowner usually will give you a better rate, which opens up more possibilities for the seller. Investors usually want a little more for the rate.
mnhomescontractfordeed.com
What are contract for deeds in Minnesota?
In contract for deed financing, the seller takes on the role of the lender/bank. Instead of giving cash to the buyer, the seller extends enough credit to the buyer for the purchase price of the home, minus any down payment.
Usually the buyer will still get all the appliances-window treatments with the sale of the home just like a typical home purchase.
The buyer and seller sign a purchase option agreement also know as a purchase agreement, which contains the terms of the contract for deed.
The title company or law office will record the MN land contract at the county recorders office in the county the real estate was purchased.
 The buyer pays back the loan over time with principal-interest-taxes-insurance.
MN Land contracts are often short term -for example, amortized over 30 years but with a balloon payment due in five years. The thought is that, within a few years, the home will have gained enough in value or the buyers' financial situation will have improved enough that they can refinance with a traditional lender or bank.
"Minnesota Land contract"
Land contracts don't pass title to the buyer, but give the buyer "equitable title," a temporarily shared ownership. The buyer makes payments to the seller and, after the final payment, the buyer gets the deed. In most situations the buyer will refinance the house. The buyer may sell the homes or pay it off in cash with no prepayment penalty anytime. In Minnesota there is no prepayment penalty. Dont be foolded by advertising gimiks stating low money down or 5% down on a contract for deed. The owners have to pay realtor fees-closing costs-taxes. Once those items are paid the seller would never be able to sell the house to the buyer with 5% down maybe a rent to own or lease option.
minnesotahomescontractfordeed.com
"Minnesota Lease option"
The seller leases the property to the buyer for a contracted term, like an ordinary rental -- except that the seller also agrees, in return for an upfront fee, to sell the property to the buyer within some specified time in the future, at agreed-upon terms including price. Some or all of the rental payments can be credited against the purchase price. Rent to own is similar to lease options. 

"DEFINITION OF LEASE OPTION "

An agreement that gives a renter the choice to purchase a property during or at the end of the rental period. As long as the lease option period is in effect, the landlord/seller may not offer the property for sale to anyone else.
When the term expires, the renter must either exercise or forfeit the purchase option. A lease option gives a renter/potential buyer more flexibility than a lease-purchase agreement, which requires the renter to purchase the property at the end of the rental period. The person leasing the Real Estate will not be able to write off the interest as if they were a home owner like a contract for deed in Minnesota.
http://www.nationwidecontractfordeeds.com/rent_to_own.html
We recommend using an experienced contract for deed Broker
Some other qualified professional experienced in seller financing and home transactions to write up the contract for the sale of the property, the Contract for deeds, and any other necessary paperwork.
The seller may need a financial or tax expert to provide advice and assistance.
Things You will want to have ready when searching for a home
These are the most important things sellers will want from the buyer in order to enter into a land contract in Minnesota and Wisconsin.
I would gather this information and have it ready it will save the homebuyer time and if there is a multiple offer you will want your offer accepted quick as possible.
mnlakeplace.com/contract-for-deed
 1. The seller may want a copy of your credit report.
2. Pay stub or 1099
3. 10% down of the sale price.
4. Job History
5. Why the buyer wants to buy a home on a cd or needs to purchase a property with cd financing?
6. Credit report.
7. Credit scores.
8. How long of a land contract will the buyer want? This is important some owners will only offer 2-3 years on a cd others with take on thee cd for a longer term of up to 5 years. The shorter the better for the seller.
It wouldnt hurt if the buyer had a good credit history but not necessary. 
The cd buyer will need to provice where the money is coming from it can be a relative-their bank account-retirement account ect.
No bank Qualify. 
Buyers are free to paint-put in a fence-make the home thier home. Why waste money renting and paying for the landlords home?
 Interest paid to a seller for seller financing is deductible talk to your accountant on this.
 Seller financing saves the buyer money: There are no lender fees, no loan fees, and no points.  
What about investors? If the person wants to buy a lot of properties but doesn’t not want to keep qualifying for a mortgage cd is the way to go. Less money down investors usually have to put 20% where is a land contract 10% is a good number. Less closing costs.
Financing through the seller can allow home ownership to buyers who cannot get a traditional home loan.
Homebuyers are usually those with poor credit or job history-self employed. Financing through the seller opens up doors of home ownership for people who may not have a steady job history or debt to income ratio that will be approved by traditional home loans.
mnownerfinancedhomes.com/contract-for-deed-listings/
 How to Find properties that will allow contract for deed financing in Minnesota and Wisconsin?
 There is a small percentage of homes for sale will of contract for deed financing. Most owners are not aware that it is even an option, and most people need the proceeds from their equity immediately so they can move on. Others just don't want to be a banker.
We can I find contract for deed homes for sale?
Our Real Estate company works with contracts on a daily basis we have been in business sense 1996.
We have the largest inventory in Minnesota to view seller financed properties. You may looks at homes anytime for free. If you see a home you like email us we will check into the cd terms for you then set up showings for you. We will find out the cd terms before we set up showings on any properties to make sure they work for you. Contract for deed properties can close very quickly. We can close on a house you want within 10 days. Once the title work is completed along with your home inspection. We always recommend the buyer getting a home inspection when buying a home.
Experience does matter. Dont settle for any agent drafting your cd that is basicly your mortgage and terms for the next few years very important you have someone protect you as much as possible.
Rent to own is differnet you rent to home till a future date then buy it for a set price. The down fall is you dont get to deduct the contract for deed interest off your taxes. The interest is a huge savings so I dont like going with rent to own homes unless you dont have much money. Then you may get into the home you like with low money down. Remember the seller wants the contract to benefit them you need someone to look into the terms and know how to write the contract. Also search owner financed properties. We have more homes than what you see on our site. If you have a realtor please contact them we cannot work with you if you have a real estate agent.
Below is a list of places you may find contract for deed information-cd Real Estate in Minnesota.
mnlakehomescontractfordeed.com

STEVE VENNEMANN 
BOARDWALK PREMIER REALTY INC
651-334-8312
CONTRACT FOR DEED BROKER MINNESOTA & WISCONSIN
WHAT IS SELLER FINANCING? CONTRACT FOR DEED IN MINNESOTA OR WISCONSIN
A MN and contract also known as a “contract for deed MN,” "agreement for deed MN," "land installment contract MN" or an “installment sale agreement MN”SELLER FINANCING"OWNER FINANCING" is a contract between a seller and buyer of real property in which the seller provides financing to buy the property for an agreed-upon purchase price and the buyer repays the loan installment. Under a Minnesota land contract, the seller retains the legal title to the property, while permitting the buyer to take possession of it for most purposes other than legal ownership. The sale price is typically paid in periodic installments, often with a balloon payment at the end to make the time length of payments shorter than a corresponding fully amortized loan without a final balloon payment. When the full purchase price has been paid including any interest , the seller is obligated to convey legal title to the property to the buyer. An initial down payment from the buyer to the seller is usually also required by a land contract. The legal status of MN land contracts varies from state to state.
Since a MN land contract specifies the sale of a specific item of real estate between a seller and buyer, a MINNESOTA land contract can be considered a special type of real estate contract In the usual, more conventional real estate contracts, a seller does not provide a loan to the buyer; the contract either does not specify a loan or includes provisions for a loan from a different "third party" lender, usually a financial institution in practice. When third party lenders are involved, typically a lien called a mortgage or trust is placed on the property so that the value of the property is used as collateral until the loan is paid in full.
It is the law in Minnesota to record the deed make sure you do this. It protects the buyers interest.

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