I want to sell on contract; help!

General Real Estate Investing
1

I am a total newbie to the REI game. I have read many books and listened to everyone and I have formed a bit of plan for investing and I would like some feed back from seasoned investors.

  • My plan is to buy home homes under value for cash.
  • After closing finance at 80%
  • I will then resell them at value on contract to Hispanics.
  • 10% down; APR my rate + 3%
  • Balloon payment due in 24 months.

A little background: I have a business that deals a lot with Hispanics. I have come to realize that they are excellent customers and pay there bills. They want to own homes but they can not obtain financing normally. Many have 10% to put down and once they obtain ITIN #'s (which my company does) and pay by check for 24 months, they can get a mortgage.

I would like input from others. Things to worry about, etc. I am also looking for a solid contract to use for the sale.
Thanks

2

Is there a question in the offing?

Keith

3

I guess no one would like to guide a newbie on his first contract sale.

Oh and Keith, sorry to waste your valuable time.

4

When you ask no question you waste everyone’s time…

You given background, laid out your “plan”, but you’ve not asked a question…what sort of feedback are you looking for…?

I will tell you, in the Fair Housing Act (Federal law) market in which we all operate, a statement like “I will then resell them at value on contract to Hispanics” is forbidden and offensive. You cannot delineate a racial group for favortism…you can ‘target’ them, however.

Keith

5

I will then resell them at value on contract to Hispanics.

If your plan really calls for this, you better make sure you don’t announce it anywhere - not even a hint - or the Fair Housing Act people will be all over you.