I am negotiating the purchase of a horse ranch, but can’t get financing right now. The agent has suggested a land contract with a wrap around. This is all new to me, though it seems a much better deal than a lease option. Some questions:
Is there a way to continue to pay taxes at the sellers current tax rate? How do I guarantee the loan servicing company is legitimate? How much should I pay them? What interest rate should I expect to pay? What if the owners die before the transaction is complete? What if I can’t get financing when the contract expires? Are there other concerns that I should have?
I think your agent is confused… Land contract and a wrap?
This one seems easy to put together…
As for other concerns; What if you dont do the deal?
yes, she said we would enter a land contract and that the new mortgage would wrap around their current mortgages (there are three houses on the property). As I said, this is all new to me. You said it was easy. How/ What do you mean, “what if I don’t do the deal?”
They are asking 8%. The payments would be tough to meet, including taxes, but I’m trying to see a way to do it. Should I try to negotiate a lower rate?