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When you’re selling real estate with owner financing, there’s one critically important question you should be asking yourself:

As the Seller, what type of loan instrument should I be using?

It’s an important question, because the answer can vary greatly from state to state.

In several states around the U.S. – the Land Contract (aka – Contract for Deed) is the most commonly used instrument for seller financed deals, because based on the laws of those states, this instrument allows for the cleanest, easiest foreclosure process in the event that the borrower defaults on their payments to the seller. It also keeps the property titled in the name of the seller until the loan is paid off.

In several other states around the U.S. – the Deed of Trust (aka – Trust Deed) is more commonly used for seller financed real estate transactions, because based on the laws of those states, this instrument is FAR easier to foreclose with. Some states have laws that will allow the Seller/Lender to do a non-judicial foreclosure and avoid an expensive, time-consuming court procedure (but this is only available if the Lender uses a Deed of Trust with the proper “Power of Sale” language included). [click to continue…]

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iStock_000000498169XSmallAfter working in commercial real estate banking for nearly a decade (while running a part-time real estate investing business on the side), I’ve closed hundreds of real estate transactions over the course of my career.

Whenever the word “financing” comes into play, there always seems to be an endless pile of paperwork and legal hoops to jump through. Everyone wants to protect themselves from liability, etc. – and while much of this documentation is good practice, it has the unfortunate side-effect of making the process seem way more confusing than it needs to be.

After facilitating many of these closings myself, I started to realize something… when you peel back all the complex legal jargon and binders of paperwork, the standard closing process for a seller financed deal almost always follows the same basic steps, and when you understand what those steps are and why they’re important, everything starts to make a lot more sense.

Especially when a transaction involves a simpler type of property (like vacant land, for instance), with a creditworthy buyer who agrees to some basic terms – there are many cases where it’s completely feasible for the seller to handle the entire closing process on their own. [click to continue…]


stunnedIt’s been a while since I’ve written a piece on the REtipster Blog for no other reason than just pure fun.

I think its important to have fun every now and then… so this week, I wanted to show you a little collection of some CRAZY real estate pictures I’ve been pulling together for the past few months.

For one reason or another, each one of these pictures made me sit back and say “Wow” – and if you’re looking for something interesting to break up the monotony of the day, I’m willing to bet some of these will probably shock and amaze you too. Check these out and enjoy! [click to continue…]


In my years as a rental property owner, I’ve learned the importance of paying attention to costs.

There’s one cost, in particular, that is very easy to overlook, yet it has the potential to sabotage the profitability of every property I own.

The Water Bill.

In some cities, it’s easy for landlords to simply make their tenants pay these bills directly – but in the city where I live (and in many others around the country), the property owner almost always pays this expense out-of-pocket.

Here’s why… [click to continue…]


The Hidden Mystery Behind Lease-Option Purchase Agreement

Lease-OptionA few months ago, I had the good fortune of meeting Chris Michaud. 

Chris has extensive expertise in many areas of real estate, including (but not limited to) coaching investors, brokerage, marketing, residential rehab, land development, multi-family, private lending, options, leasebacks and more.

When I first met Chris, he told me about a fascinating strategy he has used to close deals with a creative financing instrument called the Lease-Option Purchase Agreement. I’ve known about Lease Options for a while, but he helped me to see some of its new applications, and why this strategy deserves some air time here on the REtipster Blog – because it can be an extremely beneficial tool for both parties in many real estate transactions.

Many people fail to recognize the incredible benefits of this type of agreement at first glance, but this type of creative financing arrangement that can be a game changer for many real estate transactions. 

Chris was kind enough to put together a guest post explaining the basics of how they work, so I wanted to share it with you today. Take it away Chris! [click to continue…]

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