I want to sell on contract; help!

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.

Is there a question in the offing?


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

Oh and Keith, sorry to waste your valuable time.

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.


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.