I bought this 700k house today with a land contract is this a good deal

And with a bond for deed, just like a regular bank mortgage, you can still sell off the home for profit and pay the original seller off, the keep the profit.

Everything I said is possible and even likely. "He bought the house". He'll own less than a quarter of a house that might have lost value. Not an advisable position. Flexible rates or forced refinancing is a scam.

Earth to the dum Azz ! It's not a force refinance you can pay it off or bring down considerably the amount you owe. 2nd you have zero idea of the value of the house. I believe he said 800 or 900k, but l could be wrong, so you're wrong again. So Nostradamus what makes you an expert?

Read the OP. His plan assumes that rates will drop in the short term, which they may not. I don't know why you're all fired up about your payday loans lifestyle. I'm sorry you didn't quite make it and that people are there to encourage you to dream, and exploit you.

But you are not answering the question. Why are you saying rates will go down? Are the banks are just going to lower the rates because they want to? Or are you just telling yourself rates will be down in the next year or two, because that's what it sounds like to me. The same goes for you saying the house is worth more than you currently paid for it to justify you making this deal. I'm a realtor on the side and land contracts are not used that often, but where I've typically seen them the initial payment amount is set somewhere in the 4-6 years if not a level payment for the contract duration. And I'm not saying there's going to be a bubble that is bursting, but home prices are dropping where I am at from when first listed or initial listing prices are lower than what they were 6 months ago and we are headed into summer already. Will there be a FOMO of home sellers trying to underbid each other? There's chatter about it among realtors and listing agents could be the ones pushing those thoughts to sellers. However, the overall average home price is up, because high end real estate continues to sell at stupid prices driving that number up. But homes are still selling, but with not as many offers and open houses are required to move some properties now, which had all but disappeared for years. Good Luck! This is nothing I would've recommended to a client/relative/friend during these times.

An individual buying a property this way does so typically because they have bad credit (possibly from a prior bankruptcy). My guess is the two year term is so that they would be seven years out from a prior bankruptcy or so that they could resolve some other issue on their credit record. Anytime someone thinks they are getting a good deal, they typically are not. The fact that they profess to "know" that interest rates will be lower in two years is an indication that they aren't exactly a financial wizard. Hoping and knowing are not the same thing.

Any time I hear about someone claiming to buy something at below market value for sweet terms, it raises all kinds of red flags. It's worth reiterating that in two years, there is a very real chance that interest rates will be higher and property values lower and the OP may not be able to secure financing to pay off the purchase at that time. Then they are basically in a position where they will have to walk away from the $90k down payment and whatever principal payments they have made up to that point. Not to mention that the OP didn't say if they ran a credit check on the seller. In a deal like this, there is an off chance that the seller takes the down payment and runs (or is otherwise over leveraged and has to default on their loan for the property). If the seller defaults on their payments for the property, the bank can take the deed and leave them high and dry.

For starters the property was appraised at well over that, two the payments go into escrow. No one is taking a down payment and running.

You have not addressed why you think it can be assumed that rates will drop, and if they in fact rise, why prices won't fall. Both of which are bad for you.

There is nothing about this deal that would be attractive to someone with savings and good credit...ergo it is predatory towards people in less than ideal circumstances.

The payments go into escrow? Or a trust? So what does the owner of the property get for the first two years? Nothing? Does he own it outright already?

But still....why do you think interest rates will go down in 1-2 years? Third time I asked. Because I got news for ya....they do NOT belong down there....meaning that low of a rate. Don't be surprised if it's 20-30 years before they are that low again. Or longer.

Land contracts save you thousands of dollars on closing cost and much more. It's a way for a person to get a property quickly. For the last time l had it appraised for 900k or close to a million. It was actually on the market for that price in 2019. You are just sitting behind a keyboard guessing. And throwing all that predatory lending BS. A land contract gives the buyer the ability to close on the property quickly and save cost. It also allows,for instance a self employed person to get all his stuff together, pay down the balance over the course of 2 years and refinance it. You can also sell it, as long as it covers the balance in the interim period if you want. You can even flip it, for example, since it has been appraised for about a million,sell it for 900k, pay off the rest of the morgage and you made a very nice profit. I hope that makes sense. There is what if 's with everything. What if you lose your job, die, or something worse. That is with any morgage or anything in life.

In the eyes of the IRS the buyer is the owner as they get to deduct the interest. The title is held in escrow for collateral, just like a car loan with a bank. 20 to 30 years interest rates are still going up? ??? Most people on this board will be dead by then. The buyer can also sell it for a profit. In this case it was appraised for about a million and was on the market in 2019 for 900k, but was brought down to 690 because the seller was using it as a second home and had trouble finding a buyer in the market, and renting it was hard too, so they didn't want the responsibility of a 2nd home with the upkeep and all, just sitting there. I hope this clears up you wild ideas and makes things clearer for you. Again there are risk with everything, as you can die, lose your job, but there are a lot of opportunities with this purchase.

Exactly. Not a lot of point asking for opinions after you've entered into a contract.

FWIW, I can think of a lot less risky and less complicated ways to have closed your deal.

How is it complicated? Purchase the property, pay it down at 4 percent, then refinance the remaining balance in 2 years. You have time to sell it for a profit in this case to pay off the balance AKA house flipping for profit or get all your stuff together a find the best refinance deal in two years. There are a lot of options!

Sounds like you've got it all figured out, congrats!

Well you just answered my next question...why did he sell it to you for so much less to you? And many people have never seen rates as low as 2021 presented in their lifetime including people that are already dead. But no rates may not climb for 20-30 years. But before they go up and come down again it could be 20-30 years...if ever. But many on this board were alive when mortage rates were in the 'teens with CDs paying our rates of 10-15%. So it is possible they could go up or maintain higher levels than they currently sit today with home prices dropping for quite sometime. An attorney checked it off...that's cool. But that in no way makes it a good investment. I'm not guessing here. I've made money on real estate and lost it with lessons learned. I know what land contracts are too. You do have to roll the dice to make money and Good Luck!

Sounds more like this guy went to a how to get rich quick in real estate exhibition at his local Holiday Inn. Probably still financially recovering from his Cash for Gold business venture and his crypto investments.

Yep, no doubt this deal came with a free steak, which none of us considered on the balance sheet.