(Example 1)
Cash Price
(what we pay for the property) | 50,000 | Your Land Contract Price
(1.5 x the Cash Price) | 75,000 | Your Down Payment
(Minimum 20%) | 15,000 | Land Contract Balance
(What your payment is based on) | 60,000 | Monthly Payment
(P&I only - 9%) | 483.00 | | *In addition to your down payment you will need 1 yr of taxes and insurance. Some closing costs may apply. | |
(Example 2)
Cash Price
(what we pay for the property) | 75,000 | Your Land Contract Price
(1.5 x the Cash Price) | 112,500 | Your Down Payment
(Minimum 20%) | 22,500 | Land Contract Balance
(What your payment is based on) | 90,000 | Monthly Payment
(P&I only - 9%) | 724.50 | | *In addition to your down payment you will need 1 yr of taxes and insurance. Some closing costs may apply. | |
(Example 3)
Cash Price
(what we pay for the property) | 100,000 | Your Land Contract Price
(1.5 x the Cash Price) | 150,000 | Your Down Payment
(Minimum 20%) | 30,000 | Land Contract Balance
(What your payment is based on) | 120,000 | Monthly Payment
(P&I only - 9%) | 966.00 | | *In addition to your down payment you will need 1 yr of taxes and insurance. Some closing costs may apply. | |
| You can still purchase a home even if you have had a Bankruptcy, Foreclosure, Short Sale
Bad Credit, or are Self Employed Have you had a recent Bankruptcy or Foreclosure? Are you self employed or maybe your credit has taken a hit due to lose of income. Maybe you are a current homeowner that needs to move but your property is worth far less than your mortgage balance. You may even be in the middle of a foreclosure or trying to sell on a Short Sale but time is running out. If you are in any of these situations you can still buy a home and take advantage of the bargain basement Real Estate prices banks are currently offering. Bank owned properties are being bought up quickly by investors who can pay cash. Banks are willing to discount there properties significantly with a Cash offer. Major news reporting agencies say that the housing market has hit bottom and housing prices will soon start going up. Programs like the $8,000 Federal Housing Tax Credit and low housing prices has created buying opportunities like never before. There has never been a better time to buy a home than right now. Show us you are back on track and our investors are willing to invest in you. We have created a (win-win) transaction. Now you can have a second chance at home ownership and still take advantage of the bargain basement prices that exists in our current real estate market. You and our investors will share the bargain. My job is to make sure this transaction is mutually beneficial for all parties concerned. Our investors will purchase the home of your choice for cash and simultaneously sell it back to you on Land Contract Terms. Even though your Land Contract Price is marked up from the cash price it will still be at or below fair market value. When you buy using our program you will gain instant equity. We record your Land Contract with the County. By doing so this can significantly benefit your credit history and will help you if you decide to sell or refinance in the future. Our 30 year land contract program has no balloon payment clause so there won’t be any pressure for you to refinance or sell. If you do decide to refinance or sell there are no pre-payment penalties.
How Our Program Works
- Apply for Land Contract Financing
Click on the APPLY FOR FINANCING page and complete a short application designed to give us a snapshot of your financial picture. Don't worry if your credit is not good. We regularly approve buyers who have recently been through a bankruptcy or foreclosure. In fact, it's not unusual for us to provide Land Contract Financing to Buyers who are in the middle of their own foreclosure. On occasion, we can even purchase the buyer's foreclosed home from the bank and sell it back to the buyer at a substantial reduction in price.
- Determine what you can afford
Once we've received your application from step one we will contact you to verify the price range of home you can afford. Your primary qualifier will be your down payment. If you buy a home from our current inventory you will generally need 10% down plus one year of property taxes and homeowners insurance. If you buy a home that is not in our inventory you will generally need 20% down plus one year of property taxes and homeowners insurance. Proof of funds is needed before we go shopping. For your convenience you can upload proof of funds directly on our website as part of your application. This process is 100% secure.
Allied Network Real Estate is a full service Real Estate company with access to virtually any home on the market. We are an authorized HUD Broker, a member of the Michigan Association of Realtors and the Western Wayne Oakland County Association of Realtors and can more than adequately assist you in finding the right home. If you would like to shop on your own click on our PROPERTY SEARCH page and gain access to everything currently on the market. Or if you prefer contact us and we will work together in finding your new home.
- Determine the cash price and the Land Contract price
Once you've found a home that you would like to buy we will need to determine both the cash price and the Land Contracts price.
The Cash Price: Tell us how much you want our cash offer to be. This is the tough part, because if our cash offer is too low we run the risk of loosing the property to a higher offer. HUD homes for example often sell for substantially more than the asking price. Bank Foreclosed homes on the other hand, often sell for substantially less. At the end of the day, our goal is to obtain the best bargain possible. While we will lend our experience and expertise to this decision making process, we like for you to be involved as well. Your input is extremely important because as you will see the cash price is directly related to the Land Contract price you will pay. Next, we need to determine the Land Contract price.
The Land Contract Price: The Land Contract price is determined based on a simple formula. The Land Contract price is 1.5 x the Cash Price. Take a look at the examples on the left column of this page. |