We have talked about the pros and cons of using land contracts. Of course the pro is that your tenant buyers pay the taxes and insurance. Property in Greater Noida, Property in Noida, Property in Ghaziabad and Property in Delhi NCR. The con is that if we feel we have to take it back, it takes us a long time to get the tenant out of there. I have got this rule in my hometown of Springfield, Delhi NCR where their down payment is treated like a deposit.
In our area on a real estate lease-to-own we post a 3-day notice of eviction. If it’s a land contract we have to post a 10-day notice. Property in Greater Noida, Property in Noida, Property in Ghaziabad and Property in Delhi NCR., There are a lot of differences between the two. The people in your office have to be able to keep track of what’s what and who’s who so they can handle each situation the right way. This is hard. But, we have a dream team on it and it gets done the right way. Property in Greater Noida / Property in Noida / Property in Ghaziabad / Property in Delhi NCR.
So on a lease option, one of my people can go post an eviction notice and we are on the way to the next step. If they do not pay then, on the following week we have the attorney go to the courthouse and file eviction proceedings. With a land contract, in the case of somebody that does not pay, I can not touch them for a month. Then I have to do the 10-day notice. It really gets to be a long process and I end up feeling like I am being dragged through broken glass.
There is also a psychological factor here. If the tenant puts a large amount of money down, they will be more likely to feel better about themselves and their property. They will also do a better job taking care of things. They will essentially feel like they are owners. That makes them feel proud of their property. But that is not always the case. Property in Greater Noida, Property in Noida, Property in Ghaziabad and Property in Delhi NCR., I have had a number of great buyers who started as land contract clients. They came in with nothing because life brought them to their knees. These are good people who saw their careers fall apart, went through an ugly divorce or had some other hard circumstance. They just needed to get back on their feet.
They were still diligent and had great work ethic. They followed through with us and held up their end of the deal. They were able to cash out. So, in the end, it really boils down to the people you are doing business with. You need to know the people and know their attitudes. You can get a good sense of where their head’s at when you talk to them. But you never really know until you are in the deal with them.
