23rd Nov2012

Land Contracts In Michigan

by Global

Land Contracts In Michigan

What Is A Land Contract
A land contract or LC is a passive investment that guarantees the investor a monthly income from a high cash flow, turnkey property.

The big difference between buying a land contract property and owning a typical rental property is that by owning the land contract property, all your income is net (i.e. all taxes, insurance, and management fees are paid by the land contract buyer, as well as any ongoing running costs.

This means that you, as the land contract owner have no responsibility towards the upkeep of the property, taxes, insurance and management fee. Your land contract buyer pays you every month until the land contract is paid in full.

Land Contracts In Michigan Key Facts

  • No maintenance costs
  • No property management fees to pay
  • Hands off, passive investments
  • No running costs
  • Title stays in your or your company’s name until maturity
  • Typical 23% net return on investment per annum
  • Strong demand for home ownership in our target areas
  •  Built in exit strategy
  •  Limited opportunity throughout 2011/12

Why Invest In Land Contract In Michigan Now?
A land contract is medium term investment secured by way of owning property title. LC’s have been around since the 50’s; it’s nothing new. The use of them is determined by the property and financial markets. In the past, a resurgence of LC’s was due to high mortgage interest rates and would-be home owners could never afford the repayments. Now, they have returned because people can’t get mortgage in the first place; lenders are not lending.

Whatever the reasons are that LC’s are more relevant now than in others, it always tells us the same thing; owning property is still the cornerstone of the American dream. People of all walks of life want to own their own home and right now, land contract present buyers with an opportunity to do just that.

How Land Contracts In Michigan Works?
Investing in land contract with us could not be easier. When you buy an LC with us you are firstly investing in the property whilst at same time delivering the LC to your end buyer.

All This Has Been Done For You By Us.
Steps:

  • Property is acquired
  • Land contract buyer is found and terms are negotiated
  • Purchase agreement is written
  • Land contract is written
  • Title company is instructed
  • Completion takes place
  • Cash flow from day 1

The Benefits To Land Contract Buyer
Monthly LC repayments are around 25-30% less than the average monthly rent in the same areas. This means that the LC buyer is better off financially to stay in the property for the full term of the contract, as renting would be more expensive.

No need to deal with the banks until they have been in the property long enough to have established a solid payment record. We are helping people get back into home ownership whilst they rebuild solid credit.

Your Exit Strategy From Land Contract In Michigan
Because the land contract buyer is already in place, and paying less than average rents and under the terms of the LC contract to repay there are no incentives for them to default; they are now home owners.

Your exit strategy is after 15 year (the full term of the land contract) when the LC will reach its maturity and have been repaid in full. The LC buyer will take full ownership of the property free and clear.

Above are some of the reasons why more and more landlords are moving towards land contract in Michigan

Watch this space for 7 new land contract properties we are about to release. To make your move visit our contact us page to reserve now.

Remember:
“It is in your moments of decision that your destiny is shaped”! Anthony Robbins

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