Bond for deed

:csb:

I say that because you didn't ask a question anywhere in your post, so I assume you're just sharing.

In LA a bond for deed means that you don't have to turn over the property until he satisfies the bond, basically you are the bank in this deal (well not quite, but it isn't that far off). If you think you can decide better than a professional lending officer if this guy is good for it, great.

But if you do know more than a lending officer then you probably wouldn't ask for advice here. So I'd pass. No offense, but this is probably a game played by people who are experienced with this, know the pitfalls, etc.

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Why would a lending officer be better able to determine the credit worthiness of a single individual?

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Lending officers can be wrong about such things but they do this day in and day out and aren't stupid. The OP would be essentially betting that every bank in town was wrong to refuse a mortgage app, and it is wise to have a concrete reason why.

I didn't say no concrete reason exists. I said that if you're good enough to be better than all the lending officers in town then you probably shouldn't be asking for advice on this board.

ETA: The assumption here is that the guy is asking to do this deal because he couldn't qualify for a traditional mortgage anywhere else. That is often the case with these "creative financing" deals. Basically, you have to find out why he couldn't qualify and also why you should be willing to finance the deal when no bank was willing to. There might be a valid reason but you have to be careful.

fo, you're a smart guy but way out of your realm of expertise on this one.

BFD means it's a Big Friggin Deal if they default having given a $100k downpayment.

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it's a Big Friggin Deal if they default having given a $100k downpayment.

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I missed that in the OP. If the buyer is putting that upfront then this is indeed a sweet deal. Sorry I misread the OP, I should have paid closer attention.

Ya, I know of 'shrewd' businessmen, I would call them crooks, but what they do is legal, who use BFD to sell a property multiple times.

It is truly more of a buyer beware than seller beware transaction.

OK, I countered with 283 K and no contingency (on them selling their ski condo). They said yes at 283 but 50k now and 50k in 6 months. So basically I get an extra 18K for waiting 6 months on the second 50k. also if they default on the second 50 K I keep the first 50. So worse case I basically rent the place out for 6 months at about 9600 a month. Am I missing something?

And TIA

They just sold a condo in Colorado and are selling two other pieces of property