WHAT IS A CONTRACT FOR DEED ?
A contract for deed is an alternative financing agreement in which the seller finances the sale of the property rather than a lender. As with traditional forms offinancing, the buyer takes possession of the home after the closing of the sale. When buying a home through a contract for deed, the home buyer agrees to pay the seller the purchase price over time with interest in monthly installments.
WHO IS VSM HOLDINGS LLC ?
The real estate holding entity of VSM Real Estate. It is owned by the same owners of VSM Real Estate (A real estate management and brokerage company). The two principals are Goran Vejzovic and Ryan Schroder. Both owners have over 10+ years of real estate experience,excellent credit, and a passion for real estate investing.
COMMON REASONS TO SELL ON A CFD
1- Market Value :
Often a seller would like to do a traditional sale, but when they factor in the high cost of selling a property (9% including a 6% brokerage commission and 3% contribution to closing costs) there is no equity. When the existing mortgage balance is equal to market value, we
can mirror the terms of the financing to the existing financing and pay the mortgage directly.
2- Retirement Income :
Some sellers have a home that is paid off and rather than selling and taking it in one lump sum, they could look to sell it and receive their money plus interest spread over a period of years. It’s a wise strategy for sellers who prefer to net more money on a debt free asset.
SECURITY / STABILITY
Some owners will try their hand at renting the property only to find out that its too much dealing with repairs and maintenance, tenant payment issues, and just the general stress of being a landlord. We can effectively take all of the risk of the vacancy repairs and tenant issues and pay a single reliable monthly payment to you.
RISK OF A CFD
The risk that a seller has in a CFD is the person who is buying the property will stop making their payments. Luckily for a seller, the process of taking possession back of the property is as simple as filing a dissolution of the CFD if payments are not made for 60 days and the Sheriff will help you to get your property back. Unlike a bank mortgage, the process does not have a long redemption period or difficult processes.
BENEFITS OF A CFD
1- Fees : Save 6-9% in transactional costs. We don’t charge anything for buying a property.
2- Time : We can move quickly and close on most deals in less than 2 weeks.
3- Interests : If you are selling for more than you owe, you could receive thousands in interest payments over the term of the loan.
4- Hassle Free : No showings, offers / buyers, tenants, or other issues. We take all the work and risk.
5- Not Being A Landlord : No rental licenses, tenant issues, just one fixed payment.
6- Sell "As-Is" : No need to spend money on improvements.