Dave Says: Don't Use a Land Contract
12-10-2022
Dear Dave,
What's your opinion on buying a house on a land contract?
- Keith
Dear Keith,
I would never, under any circumstances, ever buy a property on a land contract.
In some places this kind of thing is called a "contract for deed," but the problem is you don't have the deed. The property is not in your name. You could easily run into a situation where you've paid the balance down for 10 years, then the guy you're paying gets into a car wreck or another kind of financial trouble and someone slaps a $500,000 lien against the property that's supposed to be yours.
Don't pay for property that isn't in your name, Keith. Land contracts, or contracts for deed, are dangerous for the buyer and just plain stupid!
- Dave
About The Author
Dave
Ramsey
Dave Ramsey is America's trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, and EntreLeadership. His newest book, written with his daughter Rachel Cruze, is titled Smart Money, Smart Kids. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations.
