[Dillon Eversole]

Dillon Eversole

I recently sold 2 homes on CFD because I thought that I could “foreclose” faster that way than giving away the deed, especially in a judicial state. BUT, I think it was a mistake for 2 reasons. #1, it’s not universally recognized as any specific thing. It’s rare that someone will treat it as a full on note, they’ll view it as closer to a long term lease option than anything. #2, because it’s not treated as a note, you won’t be able to get loans against it which will create a form of “dead equity” for you. If it’s structured as a note, you could always get a line of credit or term loan off of it and continue doing deals while cash flowing the 2 notes.