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Alternative Homeownership Program

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Slow Flip

How is Rent-to-Own Different from Contract for Deed?

Is a contract for deed the same as rent-to-own? How is rent-to-own different from contract for deed? What are the pros and cons of each? Which option is better for me and my situation?

These are a few of the questions we hear from both homebuyers and Realtors. We understand the confusion, which is why we’re sharing more about our program and how it differs from rent-to-own programs.

How is Rent-to-Own Different from CD Programs?

Defining Contract for Deed and Rent-to-Own

A contract for deed creates a contract in which the seller of a home (in this case, Slow Flip) provides a buyer with a specified period of time to pay off the contracted home price. This can be done by obtaining a mortgage, paying the contract amount in full, or selling the property.

To learn more about the Slow Flip contract for deed, click here.

In rent-to-own, the prospective buyer rents the home from the owner. The buyer has the option to buy the home at some point in the future. The owner remains on the deed and makes the mortgage payments.

How Are the Programs Different?

rent-to-own different
photo credit: @ibidsy accessed 2/5/22 via CC0

The most significant difference between CD and rent-to-own is the time at which the home changes ownership. In a contract for deed, the buyer buys the home from the seller and begins making payments under the contract. To compare, in rent-to-own, the seller owns the home outright until the renter buys it – which may or may not happen.

What Are the Risks of Rent-to-Own?

The primary downfall of rent-to-own programs is that they include no guarantee. Deals often fall through, and the potential buyer may not ever end up buying the home, even if they make rent payments for years. And fees are often higher than standard rents.

There are risks in every real estate transaction, and a CD may not be right for your situation either. Contact us to talk about your options!

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

This is an updated blog post that was originally published in 2020.

A Homebuying Guide for the Freelance Worker

In recent years, an increasing number of American workers have made the switch from full-time employment to a contract or freelance worker. The pandemic accelerated this trend, as workers sought more flexible positions that would allow them to care for children or work from home.

Freelancing has many benefits. However, in a financial system that is still very much built on traditional employment, it can make certain things more difficult – like qualifying for a mortgage. Unfortunately, the pandemic has accelerated this trend as well. If you’re a freelance worker, you will likely have to provide even more proof of income before being considered for a mortgage.

freelance worker
photo credit: @vlada-karpovich accessed 12/14/21 via CC0

Buying a Home as a Freelance Worker

The regulations imposed after the 2009 housing market crash, while important and necessary, have made it more difficult for people who are self-employed. Often, self-employed workers shore up their income through tax deductions. This amounts to a higher net income. But it’s not as easy to provide proof of that income, and it appears less stable to a mortgage company.

Before lending to a freelance worker or contractor, banks usually require two years of tax returns and some proof that they’re still “in business”. You may also have to provide a profit and loss statement.

Read: The Slow Flip CD Gives Homebuyers More Options

This is all doable if you’ve been in a stable freelance or contract job for at least two years. But that’s not always possible, especially if you’re new to the gig economy – as so many people are right now.

Further, the pandemic has caused a great deal of economic upheaval. Banks are now being extra careful when approving mortgages. Freelance workers will need to provide even more documentation. This takes time. In a competitive market, it can cause a prospective buyer to lose out on a home they love.

More Options with a Contract for Deed

If you’re having trouble qualifying for a mortgage as a self-employed, contract or freelance worker, consider a contract for deed (CD). Slow Flip offers financially stable homebuyers the opportunity to purchase a home on a contract for deed until they qualify for a mortgage. You’ll just need a down payment, a reasonable debt-to-income ratio (considering all income sources). You must also have a plan to pay off the CD within five years.

Could a contract for deed be the tool you need to get into a house today? Give us a call to discuss your situation.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

The Slow Flip Contract for Deed Process

If you’ve only ever purchased a home using a traditional mortgage, the contract for deed process may seem confusing or intimidating. But we’ll let you in on a secret: it’s essentially the same process you’d follow if you were buying with a mortgage!

Our Contract for Deed Process

contract for deed process
photo credit: @sora-shimazaki accessed 11/4/21 via CC0
  1. Get pre-qualified: Prospective CD homebuyers must meet a few basic criteria regarding down payment, debt-to-income ratio, and more. Learn more here.
  2. Get pre-approved: Gather and submit all necessary documentation regarding assets, down payment, income, employment and more. Once documents are uploaded, your review can be completed within 24 hours.
  3. Find a house: With the help of your Realtor, find a home that fits your budget and meets your needs.
  4. Make the down payment: When the home is under contract, you will make a down payment to the title company.
  5. Inspections: Slow Flip does not require home inspections unless there are known issues with the home. If a buyer wants an inspection performed, it is their responsibility to coordinate it.
  6. Appraisal, title, and insurance: Slow Flip usually has an appraisal performed, but the buyer is not required to seek an appraisal. We will work to acquire the title through our title company, but the buyer must choose their own insurance provider.
  7. Closing: You will make any necessary payments, including the realty administrative fee, property taxes and interest through the end of the month, applicable association dues, and others as needed.
  8. Move into YOUR home! Begin to work toward adjusting your credit and finances to meet mortgage qualification requirements.
  9. Convert the CD into a mortgage: Within five years, pay off the contract for deed. This is usually done by converting it into a mortgage.

We’re Here to Help

If you have questions about any part of the Slow Flip contract for deed process, give us a call at (952) 417-0000 or contact your Realtor.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us today.

The Slow Flip CD Gives Homebuyers More Options

When you read through home listings, you may see sellers indicate that they’re open to a contract for deed. However, that doesn’t mean those are the only available options for buying with a CD. The Slow Flip contract for deed allows prospective homebuyers to buy any home on the market.

How the Slow Flip Contract for Deed Provides More Options

In a traditional mortgage, credit is one of the main considerations in determining eligibility. That isn’t the case with the Slow Flip contract for deed. We take a more holistic view of a potential buyer’s financial situation, looking at income, down payment, and contributing circumstances. You can see all of our CD criteria here.

In addition to providing a homebuying option where one may not have existed before, the contract for deed gives more options throughout the buying process. Our CD allows you or your clients to buy any home in the metro area on a contract for deed, not just the homes where the seller is willing to consider a contract for deed. This can significantly open home availability and allow homebuyers to find the homes that will work best for their family and future.

Contact Us to Get Started!

If you or your client has any questions about the Slow Flip contract for deed, or wants to explore the process, get in touch!

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

What is a Land Contract?

Whether you’re a longtime veteran of real estate or buying your first home, understanding the many available homebuying options is daunting. Today we’ll talk about another of those options: the land contract. (Spoiler alert: a land contract and a contract for deed (CD) are basically the same!)

Learn more about rent-to-own programs

Learn more about the deed of trust

What Is a Land Contract?

Despite the name, a land contract is not simply an agreement to purchase vacant land.

Essentially, a land contract is another term for contract for deed. According to Forbes, it is an agreement to purchase a property. In a land contract, a property owner finances the buyer’s purchase of the property. Then, the buyer makes payments to the owner over a set period of time. At the end of that period, the buyer pays off the remainder of the contracted amount, and they become the owner of the property.

Sound familiar? This is because the terms “land contract” and “contract for deed” essentially mean the same thing, and are often used interchangeably. Other terms that are commonly used in place of land contract or CD are: land installment contract, land contract of sale, land sale contract, installment sales contract, agreement for purchase and sale, agreement to convey, and executory contract.

All of these programs have the same fundamental structure, and only differ based on applicable state regulations. If you’re interested in a contract for deed in Minnesota, our team of experienced real estate professionals are here to help!

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Why You Might Not be Approved for a Mortgage

After the 2009 housing market crash, the federal government enacted new mortgage lending regulations. The new rules aimed to prevent the types of fraud and deceitful practices that led to the crash and its devastating effects. However, there was an unfortunate side effect of the new regulations: many potential homebuyers found themselves unable to get approved for a mortgage.

approved
photo credit: @micheile accessed 7/22/21 via CC0

The regulations prevented buyers from being approved for a wide variety of reasons. Most commonly, those reasons involve credit or income reporting. But there are many types of potential homebuyers who’ve been shut out of the mortgage lending process.

The good news? Slow Flip helps buyers get into their dream homes now, without waiting to qualify for a mortgage. Learn more about the Slow Flip contract for deed (CD), and our requirements and process, here.

Common Reasons Buyers Aren’t Approved for a Mortgage

  • They’ve been self-employed for less than two years
  • They earn a significant percentage of their income on commission or bonuses
  • There have been income changes in recent months (or even years)
  • There are recent credit issues related to divorce or medical debt
  • There are severe credit events, such as bankruptcy, foreclosure or short sale
  • A low credit score for any reason
  • They want a contract under a business entity rather than a personal identification
  • They don’t have a Social Security number
  • They need Sharia-compliant ownership

This isn’t an exhaustive list – there are many reasons that potential homebuyers use the Slow Flip CD to buy homes. Just read these testimonials from our many satisfied clients! Then give us a call to get started.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

What to Do Before Signing a Contract for Deed

As with any major financial agreement, it’s important to enter into a contract for deed (CD) fully aware of the terms, as well as your options and rights. We’ve made our process as simple and clear as possible. However, we ask that all clients work with their real estate agent (or attorney) to confirm that our CD program is a good fit for their situation. In addition, there are a few steps we recommend before signing a contract for deed.

Four Steps to Take Before Signing a CD

steps before signing a CD
photo credit: @jaye_haych accessed 6/29/21 via CC0

Gather Your Team

Before starting the CD process, it’s a good idea to enlist the trusted professionals that will help guide you through the program. These generally include a realtor, property inspector, loan officer, and more as needed.

Apply for a Mortgage

At Slow Flip, we recommended discussing mortgage options first with a licensed mortgage originator. If you will likely qualify for a conventional mortgage within a few months, it’s best to go that route. Regardless, an originator can help you determine timing and next steps to qualify for a mortgage. (As a reminder, we focus on buyers who have a good plan to satisfy the CD within 5 years. This is usually achieved by refinancing into a mortgage.)

Get an Inspection

This is an important step to ensure that the property is valued accurately, and that there are no major issues requiring repair. You should also check with the local housing inspection office to see if there are any reported code violations.

Understand the Contract

We work to make our contract for deed terms and process clear and understandable. But you should go over the contract in detail with your team to ensure that you understand every aspect of it.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

CD Benefits for Homebuyers

Homeownership is one of the best tools to achieve your financial goals. However, if you find yourself unable to qualify for a mortgage due to credit, income, or other issues, your progress can take a hit. At Slow Flip, we work to make the contract for deed process as simple and transparent as possible, in order to help homebuyers reach their goals. There are many CD benefits that can get you closer.

CD benefits
photo credit: @mart-production accessed 5/13/21 via CC0

CD Benefits for Buyers

  1. No Mortgage Required: One of the most impactful benefits of a contract for deed is that it allows buyers who don’t qualify for a mortgage to buy a home. Then, buyers have time (up to five years in the Slow Flip contract for deed) to adjust their finances in order to get a mortgage.
  2. No Mortgage Insurance: Unless you qualify for a conventional mortgage and buy with a 20% down payment, mortgage insurance will most likely be included in your monthly payment. With a contract for deed, there is a premium added to your contract balance, but your monthly payment has no mortgage insurance. The funds paid for your contract balance are either principal or interest.
  3. Tax Deductible Interest: A contract for deed has the same tax-deductible interest consideration as buying a home and using a mortgage to finance.
  4. Decreasing Balance: Much like buying a home with a mortgage, your contract for deed balance will reduce with each payment, since part of that payment includes principal. This is different than a lease option or rent-to-own agreement, which often have upward price adjustments year after year or even month to month.

Want to learn more about the contract for deed process? Check out these blog posts:

Contract for Deed vs. Rent-to-Own

How Does Minnesota Regulate Contracts for Deed?

Why You Don’t Need Mortgage Insurance with a Contract for Deed

How to Find a Home to Buy with a Contract for Deed

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

4 Ways Realtors Can Take Advantage of the Off-Season

2020 was an active year in the Twin Cities real estate market. After a brief slump during the initial weeks of the pandemic, a combination of pent-up demand and low interest rates caused home sales to reach record numbers. Many Minneapolis realtors spent the summer busier than ever. But now, in the off-season, with an uncertain spring and summer ahead, realtors are wondering how to prepare for the year to come.

off-season
photo credit: @schluesseldienstvergleich_eu accessed 1/16/21 via CC0

Here are four ways that realtors can use the off-season to learn, grow, and develop skills that will lead to success in the busy months ahead.

How to Take Advantage of the Real Estate Off-Season

Take Continuing Education Courses

The off-season is a great time to gain more education. This will save time if your license renewal comes due during the busy season. In addition, look at the takeaways and trends of the last year and the year to come. Find courses that will help prepare you for spring and summer.

Create a Marketing Plan

It’s easy to let your marketing slide during the busy season. Take time now to develop a marketing plan for the entire year, and automate it as much as possible. This will help you reach new buyers and sellers even when you’re too busy to actively market yourself – and will keep you busier during the next slow season.

Branch Out

Is there an area or niche in the real estate market that you’ve been wanting to explore? Winter is a great time to do research and determine whether you should branch out, and make a plan for doing so.

Network

It’s easy for networking to fall by the wayside when realtors are busy showing houses, writing contracts, and attending closings. Take time during the off-season to meet new people, whether that’s through community or business groups, volunteer opportunities, or even door-to-door introductions.

At Slow Flip, Minneapolis real estate agents are our valuable partners in the contract for deed process. Learn more about how we work with and compensate realtors.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Why You Don’t Need Mortgage Insurance with a Contract for Deed

Anyone who has taken out a mortgage knows about the long and complicated closing process. Even those who are experienced in real estate can get confused by the many different documents, payments and fees. As a result, we’re commonly asked whether certain mortgage requirements – such as mortgage insurance – are also included in our contract for deed.

mortgage insurance
photo credit: @karolina-grabowska accessed 1/16/21via CC0

What Is Mortgage Insurance?

Mortgage insurance is an insurance policy, taken out and paid by homebuyers, that compensates mortgage lenders in the event of a default on the loan. Mortgage insurance can be offered by both private companies and public entities.

In the U.S., private mortgage insurance, or PMI, is commonly required when the down payment is less than 20 percent of the property value. Most homebuyers roll insurance payments into their monthly mortgage payments.

Why Don’t I Need Mortgage Insurance with a Contract for Deed?

Put simply: a contract for deed is not a mortgage. Therefore, there is no requirement to pay mortgage insurance. However, we do include a premium in the overall contract for deed amount. This can range between 3.9 percent to 11.5 percent. That’s how the program remains profitable and available to other homebuyers and families.

If you have questions about the contract for deed premium or our process, get in touch or contact your real estate agent.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage. Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Contract for Deed vs. Rent-to-Own

At Slow Flip, we know the real estate market can be confusing, especially when considering options other than standard mortgage financing. One of the most common questions we get is whether our contract for deed is like a rent-to-own program, and which is the better choice. We’ll break down the differences here.

To learn more about the Slow Flip contract for deed, click here.

rent-to-own
photo credit: @florianschmid accessed 11/15/20 via CC0

What is Rent-to-Own?

In a rent-to-own program, the potential buyer rents the home from the owner, with the option to buy the home at some point in the future. The owner remains on the deed and he or she makes the mortgage payments. These deals can easily fall through, and the potential buyer may not ever end up buying the home, despite making rent payments for several months or years.

What is a Contract for Deed?

A contract for deed, or CD, creates a contract in which the seller of a home (in this case, Slow Flip) provides a buyer with a period of time to pay off the contracted home price. This is done either by qualifying for a mortgage, paying the contract amount in full, or selling the property.

What’s the Difference?

The primary difference between rent-to-own and contract for deed is the time at which the home changes ownership. In rent-to-own, the seller owns the home until the renter buys it. In a contract for deed, the homebuyer buys the home from the seller (Slow Flip) and begins making payments under the contract.

What are the Risks?

Rent-to-own situations are inherently riskier. The owner could sell the home or lose it to foreclosure, or terminate the agreement if the potential buyer fails to make a rent payment. The fees could end up being higher than if the renter had simply rented a home while saving for a down payment.

Of course, there are risks in any real estate transaction. However, at Slow Flip, we’ve worked hard to create a simple, transparent and trustworthy process – just read the many testimonials we’ve received from our homebuyer clients! If you’re interested in a contract for deed, we invite you to contact us to learn more.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home in Minnesota using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Small Changes That Add Big Value to Your Home

Whether you’ve just moved into a new home or you’ve lived in your house for years, the prospect of making upgrades can feel daunting. But you don’t need to make major changes to see improvement to your home’s value – or your enjoyment of it. Realest has a rundown of easy changes you can make to add value to your home, which we’ll summarize below.

value
photo credit: @karaeads accessed 11/15/20 via CC0

Add Light to the Living Room

Because living rooms are often central within a home, they can feel dark and closed off. Adding lighting, either via lamps and overhead lights, or a skylight or suntube, can make a big difference in the feel of the room.

Upgrade Bathroom Fixtures

A complete bathroom overhaul can be expensive. To get a fresh feel in the bathroom without undergoing a major renovation, simply upgrade the fixtures. This is also a great way to make your bathroom more eco-friendly by adding low-flow and sensor-activated fixtures, which could be a huge selling point.

Clean Up the Yard

The yard is the first thing that potential homebuyers see when they arrive at a home. Creating a functional and livable outdoor space will add significant value, and it’s relatively easy to do. It’s also a great idea to add a patio or deck that connects to the house, creating additional space for living, dining and entertaining.

Address Pain Points

Are there parts of your home that make life more difficult? Are there any small changes that could make living there more pleasant? Any upgrades you make will boost your home’s value – and allow you to enjoy it more.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home in Minnesota using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Realtor Commissions in the Slow Flip Contract for Deed

At Slow Flip, our Realtor partners are a valued part of our contract for deed process. We recognize the importance of having an experienced agent guide homebuyers through the process. This is why we require our buyers to be represented by a Realtor or attorney, and we ensure that Realtors are well compensated for their assistance. Continue reading to learn how we determine realtor commissions.

How Slow Flip Determines Realtor Commissions

There are two transactions in the Slow Flip contract for deed process. In the first, Slow Flip purchases a property from the seller. In the second, Slow Flip sells the property to the buyer. The price of the home is higher in the second transaction, because it has closing costs, premiums, and other fees built in.

In order to make commissions as simple and transparent as possible, Slow Flip offers Realtors a set commission amount. That is determined during the first transaction. For example, consider a home that initially sells for $300,000. The commission paid to the selling agent will be $8,100.

When Slow Flip sells the property to a contract for deed buyer, the Realtor will get a commission equal to that amount – $8,100. This allows the agent to earn a fair commission while keeping the program profitable.

To learn more about Realtor commissions, watch Chad explain it here. If you have any questions, please contact us or set up a meeting.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Closing Costs in a Contract for Deed

When you purchase a home through the standard mortgage process, there are almost always a set of closing costs that must be paid. Often, this becomes a point of negotiation between the seller and the buyer. Closing costs can be used as a way to effectively raise or lower a home price, or as a trade-off for some other expense.

In the Slow Flip contract for deed, it’s a little more complicated. The CD program includes multiple transactions, each with its own set of closing costs. But we’ve worked to simplify the process, as you’ll see in this video.

Multiple Transactions, One Set of Closing Costs

The Slow Flip contract for deed program involves multiple transactions. First, Slow Flip purchases the property that has been selected by the client. Second, the client purchases the property from Slow Flip on a contract for deed. Third, the client pays off the contract for deed within five years.

Each of these transactions has various costs associated with them. To make the contract for deed process simpler, we calculate the total of these ‘transactional costs’ and typically build this into Slow Flip’s acquisition price for the property. This not only simplifies the process, but lowers the amounts necessary at closing from the buyer. If the buyer has additional funds to absorb the transactional costs at closing, instead of including them in the acquisition price, it would lower the overall cost of the contract for the buyer.

If this sounds complicated, contact your Realtor or give Slow Flip a call. We’re always available to answer questions and help potential homebuyers understand whether our CD is right for them.

 

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

 

About Slow Flip and Our Contract for Deed

The Slow Flip contract for deed program was founded in 2013 with the goal of providing homebuying options for families who had been shut out of mortgage eligibility. Since then, we have helped more than 100 homebuyers get into homes, allowing them to build equity, control their living situation, and create stability for their families.

We understand that there may be some uncertainty around Slow Flip or our contract for deed (CD). We want to provide assurances to potential homebuyers that our CD is a safe, smart, and financially sound option.

The Slow Flip Track Record

The Slow Flip contract for deed program is locally owned, privately funded, and backed by a number of local financial institutions. Of our approximately 70 active transactions, about half have already successfully completed the program, obtained a mortgage, and paid off their CD. These families are now living in their forever homes with a mortgage, and were able to build equity during the time they spent under the CD.

Most clients take between a few months and five years to convert their contract for deed to a mortgage. Generally, it takes an average of 2.5 years before buyers are able to align their credit, income, debt and assets in order to qualify with mortgage restrictions.

Why Work With Slow Flip?

We’re a small, local business, and we’re dedicated to serving our clients. We provide personalized service that large companies and institutions can’t match. And we have a lot of grateful clients – just read these testimonials from some of our homebuyers!

Want to Learn More about the Slow Flip Contract for Deed?

Read these informational blog posts, and contact us with any questions. We’re here to help!

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  Our contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Should You Look at Homes Outside Your Price Range?

When you begin the process of buying a home, one of the first things you should do is set a budget. Knowing how much you can afford – and how much you’re willing to spend – will shape your house hunting journey. But, often, potential homebuyers find a perfect home that is outside their price range. Is it ever a good idea to look at homes above your budget?

According to realtor.com, it’s a good idea to stick to your budget. You decided on that amount for a reason, and it’s easy to get in trouble when you buy a home that you can’t afford. But there are a few situations in which buyers may want to consider homes outside their price range. We’ll discuss those below.

price range
photo credit: @ketut-subiyanto accessed 09/09/20 via CC0

There’s Nothing Available In Your Price Range

The Twin Cities housing market remains extremely competitive, and this tends to create more of a challenge for buyers in lower price tiers. Expanding your price range even slightly could open up more available options. And, depending on the amount, it may not raise your monthly payment by very much.

There Are Other Factors To Consider

If you can’t find a home in your budget in your preferred location, consider additional options that could help strike a balance. For example, if you look in a neighboring town with higher median prices but lower taxes, the total monthly payment might be very similar.

There Might Be Room For Negotiation

This is less likely in a competitive market, but your agent may be able to negotiate a lower price if a home has been on the market for some time.

The first step in determining whether to consider a home outside your price range is to have an open discussion with your agent, mortgage broker or financial planner. Happy hunting!

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

Why Buy a Home With a Contract for Deed?

When you start thinking about buying a home, the first advice you’ll hear is to get preapproved for a mortgage. It sounds easy, and for many people, it is. But there’s a significant percentage of potential homebuyers who learn during that preapproval process that a mortgage is out of reach for them. The unfortunate reality is that many people have a difficult time qualifying for a mortgage – and then find themselves unable to buy a home.

There are strict criteria for qualifying for a mortgage, but the Slow Flip contract for deed can often be more flexible and reasonable. Chad lays out the specifics in this video:

Credit

Credit is the primary reason that many folks don’t qualify for a mortgage. Lending requirements were tightened significantly after the 2009 housing market crash. They have been tightened even more due to the COVID-19 pandemic. This has left many families with low credit scores, due to bankruptcy, foreclosure, short sale or judgment unable to qualify for a mortgage, even though they have enough money in the bank.

Income

Income is also a major factor. People who are self-employed, who rely on seasonal or part-time income, who have had a disruption in their income or who are anticipating a change in income may not be able to get a mortgage and buy a home.

A Contract for Deed Offers More Flexibility

In contrast, with a contract for deed, we’re able to look past credit and income to determine eligibility. Visit our blog post to learn the three primary criteria that we consider before moving ahead with a contract for deed.

If you have questions about the Slow Flip contract for deed and whether you or your client might qualify, contact Chad at 952-417-0000.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs buy a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us today.

Criteria to Qualify for a Contract for Deed

There are many situations in which a potential homebuyer is financially able to buy a home, but finds themselves unable to qualify for a mortgage due to lender criteria. One example is a person who works in sales and receives much of their income through commission. They may have money in the bank, but their stated salary is low. Another example is a person who is self-employed, and who finds balance in their income through tax deductions.

For these people and others like them, the income requirements woven into mortgage regulations may make it impossible to obtain a mortgage, despite the fact that they can afford to buy a home. The Slow Flip contract for deed is able to look past these traditional barriers – as long as buyers can meet a specific set of criteria.

There are three primary criteria that must be met in order to qualify for a Slow Flip contract for deed.

  1. A down payment of 10 percent or more;
  2. A debt-to-income ratio that is reasonable for the target home price; and
  3. A plan to pay off the contract for deed within five years – often by converting to a mortgage.

In order to keep our contract for deed attainable, we generally focus on homes priced between $250,000 and $500,000. However, with sufficient down payment, we will consider homes priced over $500,000. Slow Flip primarily services the seven-county metro area, but we also handle out-state Minnesota properties that are on a significant lake.

If you have questions about any of these criteria, and whether you or your clients meet them, call Slow Flip at 952-417-0000.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.

How Slow Flip is Operating Through COVID-19

At Slow Flip, the health and safety of our team, partners, and homebuyers is our highest priority. As we navigate the unprecedented health and economic fallout of COVID-19, we are working to provide the best possible service to homebuyers and our realtor partners, while following all state guidelines for social distancing.

While working from home, we remain available to homebuyers who are interested in leveraging the Slow Flip contract for deed to buy homes. And, through virtual showings and online closing tools, home sales continue in Minnesota and throughout the country!

 

Home Searches and Sales Continue Through COVID-19

Initially, as COVID-19 began to spread, and stay home orders were issued, new home listings and sales dropped. However, by mid-April, online home searches rebounded to higher numbers than the same period in 2019. In Minneapolis-St. Paul, search traffic fell significantly when businesses closed and residents were asked to stay home. But by mid-April, online home searches increased once again.

This means that, as social distancing regulations are modified in the coming months, we are likely to see a rebound in prospective buyers and home sales. However, due to the rising unemployment rate and potential long-term economic harm,  mortgage regulations may tighten even further. If you or your client is in this situation, the Slow Flip contract for deed may provide the opportunity to purchase a home, despite an inability to qualify for a mortgage.

The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible.  The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.

Are you or your clients interested in learning more about the Slow Flip contract for deed?

Contact us at 952-417-0000 today.