Input requested

Hello All,

I’m asking for input regarding this investment strategy.

I locate investors, who can get a loan. I locate the properties. They will buy the properties in their name. We then resell the property using Contract For Deed/Land Installment Contract. We get a 5% - 10% downpayment from the buyer which we split. I collect the cashflow. When the buyer refinances within 2 - 5 years, we split the rest of the profit.

I have a mortgage broker who could get the investors 100% financing.

I know this strategy isn’t new and has been covered in several course materials, but wanted to know if anyone sees any pitfalls or gotchas.



Glad to meet you.

If you ask the people who went for this type of deal and when the Contract for Deed buyer stopped paying and the people who put the deal together don’t keep making the payments and the house goes into foreclosure, then the person who’s name is on the loan get the foreclosure on their credit report.

They have no way to save the deal because they signed over the deed into a trust controlled by the people who conned them into a deal like this.

Sure it is being done, however the people who are doing it will be held accountable sooner or later by the proper authorities.

Whenever you ask someone to use their credit, this is an awesome responsibilty for the person asking, is the person asking prepared themselves financially to protect this person and keep them out of harms way?

John $Cash$ Locke


Thank you for your response.

I was thinking that we would form an LLC partnership which holds the property. If the LIC buyer stops paying, yes we would have to continue making payments, but can foreclose and remove the buyer. Is I understand it, the process is pretty quick in MD when you have a Land Installment Contract that goes bad.