What is a land contract?
Land contracts have been involved with a way to finance property for over 200 years in the United States. They are still very common today in the Midwest. The history of land contracts came from selling land on installments.
Every state has different laws as far as repossessing a property if the land contract is not being paid.
The benefits for the sellers-investors they get a down payment, a cash flow with interest, and usually better payment behavior on the sale of a property. They also got preferential tax treatment, as being taxed when the money comes in.
The benefits to the buyer, which is generally called a vendee, is that they get a property usually in a better neighborhood, and they get to practice home ownership. It is easier to refinance a land contract than it is to get a first home buyer loan.
Read from Wikipedia Land Contract.
REISkills loves land contracts to buy property.
