The qualifications for A-Good-Deed contract for deed are:
- 20% minimum down payment
- Reasonable income stream and/or monthly payment plan
- State LLC documents and EIN
- Exit strategy – plan to refinance, sell or otherwise pay off the contract for deed within 5 years
- Occupancy – In Minnesota, buyers must be investors. Investors will usually rent the property, possibly flip the property, but can not owner-occupy while in the contract for deed.
Qualifications
Down Payment – a minimum of 20% or $60,000 (whichever is greater) is a reasonable down payment for A-Good-Deed contract for deed. Sources are flexible provided funds come through a bank in the United States and ideally through the buyers business account.
Income – Unlike a traditional mortgage, A-Good-Deed contract for deed program can consider upcoming and unique income streams and asset-depletion perspectives. If it makes financial sense, its likely acceptable.
LLC documents and EIN – A-Good-Deed CD buyers purchase using a single member LLC, where the signer is the sole member. If an LLC is not already established, your accountant or attorney can usually help you set up within a day….and there are no separate tax filings (flows through to your personal tax returns). Contact us to discuss other company formations (sole proprietors, C corp’s, S corps, partnerships, etc)
Exit Strategy – We want to clarify your plan to pay off the contract for deed within 5 years. Typically refinancing with a mortgage is the plan, but some exit strategies involve selling the property or making large periodic payments. Having a reasonable plan is critical to success with A-Good-Deed contract for deed.
By the way, CREDIT is NOT A FACTOR with A-Good-Deed contract for deed!
Now, with just a little information, we can determine if A-Good-Deed may be a fit for you:
