Don't Use a Land Contract
Keith asks what Dave thinks about buying a house on a land contract.
QUESTION: Keith on Facebook asks what Dave thinks about buying a house on a land contract.
ANSWER: I would never buy any property on a land contract ever, under any circumstances. In some places, it’s called a contract for deed. You don’t have the deed. The property is not in your name. You pay on it for 10 years, you pay the “balance” down, and then the goober that you’re paying gets into a car wreck and someone puts a $500,000 lien against the property that is supposed to be yours.
Because it’s not in your name, everything he screws up ends up with a lien against the property that was supposed to be yours. Do not pay for property that is not in your name. Land contracts or contract for deeds are very dangerous for the buyer and just plain stupid.