Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

SELLER FINANCE or CONTRACT FOR DEED? 🤔 Which one is BETTER?

5 Apr 2023 · 0 min

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0:27

In this brief segment, the speaker contrasts seller‑financed transactions with contracts for deed, emphasizing how title ownership differs. With seller financing, the buyer holds legal title while the seller remains off title but retains a lien as a private lender. In a contract for deed, both buyer and seller (or their LLCs) appear on the title, sharing ownership. The speaker illustrates these concepts with two personal six‑plex purchases: one acquired via seller financing (buyer on title, seller holding a lien) and another bought through a real‑estate contract where both parties are on title.

Seller financed, you're the one on title. On contract for deed, you're both on title. Crazy. There's a difference. There's equitable title and then there's legal title. Now, I bought two sixplexes side by side. One of them was seller financed. I'm on title, seller's off title, but they hold a lien as a private lender against the property. However, the one I bought a couple of blocks away, I bought on a real estate contract and we're both on title. Both of the ownership LLCs on title.