You’ve made the decision. You’ve decided it’s time to purchase land and build on it. To save money and avoid red tape and extra paperwork, you realize your best bet is to look for owner-financed (sometimes called seller-financed) land. However, not wanting to go through a bank, you don’t have access to someone’s financial expertise. You may be feeling a little lost. Do a little research, and keep these tips in mind as you search.
1. Make Sure It’s the Right Land for You
Chances are, you’ll find plenty of land for sale by the owner in Georgia. The problem is that not all of that land will meet your specific needs. You’ll need to research floodplains and insurance, determine what you’re allowed to keep on the land, and even research what kinds of structures you can build. Also, get in touch with the county in which the land sits. There may be restrictions in place concerning when you can start building.
2. Research Interest Rates
Part of the excitement of owner financed land is the flexibility you have with the deal. It’s really just up to you and the other party. However, that doesn’t mean you can ask for whatever you want. (Well, you can always ask…) In most cases, the owner will be asking for an interest rate significantly higher than the bank would offer. If you go in well-armed with the numbers currently in the market, you’ll have a better chance of proposing a deal that the owner can’t say no to.
3. Structure a Deal that Works for You
You already have an advantage by avoiding extra bank fees, such as closing fees. And because of this, you can move faster to get your land. Now you can also work out the details of payments. It’s a rare land-owner who wants you to spread out your payments over 30 years. Use what you’re saving in bank fees for a bigger down payment, and reduce your number of payments. Be mindful, however, that you will still need to put money away for a probable balloon payment at the end of term.
4. Or...Come See Us
Absolutely no one makes it easier to buy owner-financed land than we do. If the steps above seem difficult and scary, just forget them and come see us! We just ask for $295 down payment and then your monthly payments. We don’t do credit checks or charge closing costs. You can lease to own your new land in a matter of minutes! Hopefully you feel more confident now as you go out to search for your owner financed land, especially knowing your dream can come true faster, without the fear of being rejected by a bank for financing. Need a place to look? Check out Hurdle and browse through our offerings that are in the perfect area for you.