Let's See If We Are a Fit!

 Selling using a land contract instead of traditional financing is very common in commercial real estate, especially in self storage. 

Although a buyer may want to buy your facility, perhaps the financials or the property condition makes this difficult.  Therefore,  an experienced buyer will perform the repairs and straighten out the financials over a period of time in exchange for selling on on a land contract.

Once the facility is upgraded and there is now a financial history, the buyer can refinance with a traditional lender.  This can be as short as one year or for as long as agreed by both parties.

What is a Land Contract?

A land contract is an alternative option to traditional bank financing, where a buyer and a seller that states the buyer is purchasing property but will not receive the legal title until the debt has been satisfied. 

Land contracts are a form of owner financing that are commonly used in residential and commercial real estate, like self storage. 

Unlike a mortgage, a land contract stipulates that if a buyer does not fulfill his financial obligations in the agreed upon terms of the contract, then the seller regains possession of the property and keeps whatever money the buyer has remitted. Land contracts are legal and binding in most States and must be in writing in order to be enforced. 

A well crafted land contract can be beneficial to both buyer and seller.  The seller can continue to receive a reliable monthly income from a familiar asset that is protected by the equity in the property.  The buyer can avoid the lengthy and costly process of bank financing.