# Owner Financed Land



## Flessard (Jul 31, 2017)

A little backstory. I was born and raised in Maryland on a 5-acre farm. We raised cattle, chickens, bulls, horses, and had vegetable gardens. My husband was born and raised in Louisiana, so he has the hunting and fishing blood. We currently live in Northern Georgia and would like to find something, somewhere that we can build a small, at least, half self-sustainable homestead (we still want well water and electricity). 

I own a small, online business that would sustain us for income, but finding the perfect place (city and state) is where we are having a difficult time. We would need owner financing as both of our credit is shot right now (still working on building it back up). 

Where would be a nice, not so humid, area that would be a good place to settle down? Any suggestions? Also, any owner financing companies would be appreciated as well.


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## hunter63 (Jan 4, 2005)

Hunter63 Saying Hey and Welcome......From Wisconsin.
Your situation is a tough one....
Most owners are not finance companies.....They want assurances they will get their money back....

Best bet would be "rent to own"....or "land contract"

Good luck...but with poor credit gonna be tough.


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## kinnb (Oct 23, 2011)

Welcome!


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## Skamp (Apr 26, 2014)

If sustainability is in the equation, frugality is too. 

Work on your credit, with all resolve. That should lead to habits that will be essential to come. 

Do you have a garden now? Compost?

Do you own a sewing machine?

What do you have to stock the tool shed?

Do you can any food?


The early lifestyles you give are admirable, but you have to put it all together today?


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## Hitch (Oct 19, 2016)

As far as financing... very few banks offer mortgages on undeveloped land and if they do they're going to want 30%-40% down, with good credit. So that leaves owner financing and any reasonable seller is going to ask for no less then 30%+ down with the balance paid off within a few years. Credit aside, you need to save a significant amount of cash too.


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## Hitch (Oct 19, 2016)

As far as financing... very few banks offer mortgages on undeveloped land and if they do they're going to want 30%-40% down, with good credit. So that leaves owner financing and any reasonable seller is going to ask for no less then 30%+ down with the balance paid off within a few years. Credit aside, you need to save a significant amount of cash too.


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## Wolf mom (Mar 8, 2005)

Hank's right. I recently sold 17 acres with well, bordered on two sides by the national forest. Nice piece of property. 
I took a deed of trust with 25% down at 8% interest. 

If anyone tells you to buy with a land contact, and many do, understand exactly what it is. It really benefits the seller and not the buyer.

If you have crappy credit, why would anyone want to sell you something long term? You are judged on past behavior. Even if it's not your fault - like medical bills. Sellers are pretty sophisticated these days, and it's not hard to run a credit report.


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## Flessard (Jul 31, 2017)

Other than the other details listed in my initial question, the only question I needed (and still haven't had) answered is the best place to begin, and if their are any good owner financing companies around. 

If you don't have those answers, that's fine. I do understand my credit situation, but as I stated previously, it's being worked on. We aren't in the market to purchase tomorrow. It's only research at this point.


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## hunter63 (Jan 4, 2005)

Flessard said:


> Other than the other details listed in my initial question, the only question I needed (and still haven't had) answered is the best place to begin, and if their are any good owner financing companies around.
> 
> If you don't have those answers, that's fine. I do understand my credit situation, but as I stated previously, it's being worked on. We aren't in the market to purchase tomorrow. It's only research at this point.


I think that is wishful thinking.......
There is no such thing....Sorry
Good luck......
You have to start somewhere


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## rjburk (Jul 19, 2017)

look up landisgreat.com and contact them, they do a lot of owner land financing.....


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## Skamp (Apr 26, 2014)

I'll apologize, kinda sorta. 

I live where I do because the family brought me here. I've traveled quite a bit for work, and I still see it as the center of the universe. I've traveled with many that would see otherwise. Personal opinions on a home is very, very, varied. You need to set some parameters, live them now, define the importatant items, and proceed. 

If one size fit all, we'd all be in megaopalitz.


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## Skamp (Apr 26, 2014)

Do you own a sewing machine? Lol


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## hunter63 (Jan 4, 2005)

rjburk said:


> look up landisgreat.com and contact them, they do a lot of owner land financing.....


Most of the transactions are Land Contract 
Quote>

*Financing*
M Land offers flexible OWNER FINANCING on any of *its *properties. There are no credit checks or intrusive inquiries that you would get at the bank.

The financing is designed to help anyone obtain their dream of owning property. It is for those with little to nothing down or for those that have a down payment or those with a cash purchase.

All that is needed up front is $300 to cover all closing costs. Monthly payments would then start about 30 days later. All transactions can be done via mail with notarized signatures.
Interest rate with no down payment is 10% and can be lowered with a down payment. For every 5% down, the rate is lowered 1% to a low of 6%. There are no prepayment penalities and anything extra over the regular payment is applied to the principal.

*All purchases are done on a land contract with a warranty deed provided at payoff*. M Land will finance any of its properties up to 30 years.

Please feel free to call or email with any questions or to have any payment numbers run for you.
Quote>

http://landisgreat.com/financing/

I guess good deal IF you want to buy their offerings....and IF you don't miss a payment on 30 years....... land contracts may take land back if you miss payments...would need to check.


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## AmericanStand (Jul 29, 2014)

If you want lower humidity you are looking at the west. 
Western Oklahoma , Kansas Nebraska , north and South Dakota small towns come to mind.


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## Declan (Jan 18, 2015)

hunter63 said:


> Most of the transactions are Land Contract
> Quote>
> 
> *Financing*
> ...


10% is outrageous interest and 6% isn't that much better when you can still get under 4% on a fixed mortgage. 

As for the OP, I would just decide some areas I might be interested in, and put ads on craigslist explaining you are looking for a small fixer upper with X acres with owner financing at reasonable rates. You would still be better off if money is an issue buying a small house in serious need of remodel than to stick build even a small house from the ground up.


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## hunter63 (Jan 4, 2005)

Declan said:


> 10% is outrageous interest and 6% isn't that much better when you can still get under 4% on a fixed mortgage.
> 
> As for the OP, I would just decide some areas I might be interested in, and put ads on craigslist explaining you are looking for a small fixer upper with X acres with owner financing at reasonable rates. You would still be better off if money is an issue buying a small house in serious need of remodel than to stick build even a small house from the ground up.


I agree......The lender has all the leverage if you have nothing up front......That how the can offer you, their land, on their terms, for too much money...and still can take it back if you miss payments.
Just be careful......


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## rjburk (Jul 19, 2017)

you can also put as much down as possible and no penalty for paying off early.....same as any other purchase of land or house....


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## AmericanStand (Jul 29, 2014)

Make sure there's no penalty for paying early.


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## Back2Basix (Dec 24, 2015)

Declan said:


> 10% is outrageous interest and 6% isn't that much better when you can still get under 4% on a fixed mortgage.
> 
> As for the OP, I would just decide some areas I might be interested in, and put ads on craigslist explaining you are looking for a small fixer upper with X acres with owner financing at reasonable rates. You would still be better off if money is an issue buying a small house in serious need of remodel than to stick build even a small house from the ground up.


I agree it's high but not outrageous by any means. 4% is available IF you've got the credit, history, down payment, and collateral.

If i was the lender and someone was looking to buy vacant land with $0 down, no/poor credit, etc. i don't think 10% offsets the risks i would be taking. Its still vacant land and if they can't afford a down payment, what are the odds they can afford a dwelling, well, septic, utilities, etc.


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## Declan (Jan 18, 2015)

hunter63 said:


> I agree......The lender has all the leverage if you have nothing up front......That how the can offer you, their land, on their terms, for too much money...and still can take it back if you miss payments.
> Just be careful......


If it is their land, my gut instinct is it is like these used car places that insist you make weekly payments, they aren't there the day the payment is due so they can repossess your car and sell it to the next sucker.


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## Declan (Jan 18, 2015)

Back2Basix said:


> I agree it's high but not outrageous by any means. 4% is available IF you've got the credit, history, down payment, and collateral.
> 
> If i was the lender and someone was looking to buy vacant land with $0 down, no/poor credit, etc. i don't think 10% offsets the risks i would be taking. Its still vacant land and if they can't afford a down payment, what are the odds they can afford a dwelling, well, septic, utilities, etc.


12% is the point after which it becomes illegal in my state if you are not a registered banking institution or lender. 10% is high to me.


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## hunter63 (Jan 4, 2005)

Declan said:


> If it is their land, my gut instinct is it is like these used car places that insist you make weekly payments, they aren't there the day the payment is due so they can repossess your car and sell it to the next sucker.


This does happen......
In a different life time...worked wit 2 brothers that came from Yugoslavia...old day before the trouble.
Both work in out shop.
They would stay in a room over their Uncle's bar...and help out for free rooms.

Saved all their money....then they bought duplexes......and sold them.....
They financed the buyer...no money down...but had a very large balloon payment in the third year.
Most everyone couldn't make that payment...so they would get it back and sell it again.
Both bought bars ...to kinda hide their money....and also ran an imports business.

Point is....this stuff happens all the time...and is legal.....and as long as you make the payments on time...It will become yours ...just take awhile.

Actually bought my second land parcel at "The Place"....under a land contract....and at the end of the contract received a letter from the seller...telling me I had satisfied the contract...and was done paying. 
We had a spread sheet...both of us... and seemed that I still had a year and about $1300 buck left.
So.....what to do?
I had asked to pay it off early...but the guy didn't want me too?

Sooo, called my lawyer and had him take care of the details...Yup was paid...???.....and did get a clear title signed off on...and logged it to the county.

In the back of my mind was 14 years of payments....a loosing out for default on a payment.
Cost me $150 bucks of for well spent money....
I do not like leaving these things to chance.


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## big rockpile (Feb 24, 2003)

Well around here Owner Financing is normal and it is 9%.

That is the way we bought our place, still owe 5 years. Bought a pretty nice Farm Owner Finance off a member of this Forum.

Also buy for Back Taxes. Got a place down the road, Back Taxes $450. We bought one place $1,000.

big rockpile


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## Jlynnp (Sep 9, 2014)

This company sells property with a small down payment and monthly payments. Now they sell to anyone so normally the property is sold multiple times until someone finally follows through with actually paying for it. Most of the properties are wooded/having been "selectively" cut. You just need to check the property out very well before you sign on the dotted line.
http://plateauproperties.com/pages/Tennessee-Land-Inventory-latest-numbers.html


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