Land contract rates 2020
A land contract could require a foreclosure to get the buyers out. A lease Option is usually an eviction. Plus the tax consequences for a land contract are not as sexy for you like a lease Option. Now with that said, if you are gonna ignore me and still want to do a land contract, I would charge 18%. That is what I charge when I lend money. Land contracts, also known as trust deeds and contracts for deeds, are an alternative method of buying a property. With a contract for deed, which is how land contracts are generally referred to in Florida, the buyer gets financing from the seller instead of going to a conventional mortgage lender, such as a bank. Also called a contract for deed or an installment sale, a land contract is an agreement under which the owner of the property agrees to give you ownership of the property once you complete your obligations under the contract. Typically, contracts require monthly payments and have a balloon payment some time in the future.