Hans compares contract for deed (CFD) and wraparound mortgages for seller financing, detailing their pros and cons for generating passive income.

CFDs keep the seller as legal title holder, offering: 1) Eviction options for defaults (under 20% equity), 2) Quick closings, 3) Lower costs, and 4) Simpler handling of underlying debt. However, CFDs face: 1) Insurance complications, 2) Utility issues, 3) Perception as an inferior product, 4) Buyer selling complications, 5) Refinancing challenges, and 6) Lower note value. Wraps convey title to the buyer, providing: 1) A superior product, 2) Higher down payments/rates, 3) Streamlined structure, and 4) Higher note value. Downsides include: 1) Due-on-sale clause risks, 2) Higher costs, 3) Complexity/time, and 4) Foreclosure requirements.

Choose based on state laws and risk tolerance!

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