Why do people owner finance acres of land...?

Sabra Roers: Most banks will not loan money to purchase land......at least in my state. Often the only way to sell raw land is if the seller/grantor carries the deed himself or sells for cash. Most time the buyer will pay more for the land if the seller does the financing. Generally the time frame is around 10 years.Also, sellers/grantor that carry the financing get a much higher interest that if they placed the money in the bank even with a long term CD....Show more

Frederick Mccoach: Owners can make up their own financing terms for one, and also vacant land is much more difficult to finance and carries a higher interest rate than purchasing a house on an already developed lot.

Justin Casten: You're making an agreement with the purchaser. He consents to position a targeted amount as down fee. Each of you compromise on the terms.....Percentage expense of the mortgage and for a way lengthy. Do a word and Deed of believe. Any escrow administrative center will ! hooked up the entire forms and file the transaction with the county recorder. I would advocate that you simply pay the extra price to be notified if the property taxes emerge as delinquent. In todays market, at least 25% down, 5%-6% curiosity fee amortized over 10 years and all due and payable if the purchaser sells the property. That may be a standard variety owner elevate agreement. In case your like throwing away cash have a legal professional do the paper give you the results you want.....He'll charge you $500 to $a thousand and then have his secretary print up the same document an escrow officer would use and charge you lower than $one hundred. No buyer with any sense would ever buy any real estate on a land contract given that of the advantage fraud that more often than not accompanies them. It's the non-legit that are those that get burned with a land contract....Show more

Adelle Weight: It is almost impossible to get a loan for raw land. It is normallyl alwa! ys a cash deal. By offering financing the owner opens up fo! r more buyers, and of course can easily foreclose, seizing the land and all improvements in the event the contract is not followed to the letter.These deals very very rarely work out for the buyer.

Mohamed Szollosi: Owner financing can help a person buy land who wouldn't qualify for a loan. It does carry extra risks for the seller because if they default, you can get the land back.