Many people are looking to purchase vacant land for a variety of reasons. Some want to purchase now for future use. Others are using it as an investment, during the current market, and are looking to sell after the market appreciates. Still others are land banking, or buying numerous parcels in areas that they anticipate seeing growth patterns or zoning changes, giving them immediate equity when these changes take place.
However, the bottom line is, unless you have a large pool of cash in which to purchase such parcels, most people feel stuck as conventional methods cannot be used and almost always are not available. That being said, there are options available.
Is It Good to Buy an Owner-Financed Property?
How to Finance a Home by Owner
The simple answer to that question is, it depends. Is is good to finance your home? Most people do not consider their home as an investment, yet, for the vast majority of people in this country, their home is their greatest investment. However, almost all of these people would not have been able to purchase their home without some sort of financing. Thus, every individual needs to evaluate their circumstances. Figure out what your goals are and then establish a plan to reach this goal. This should include determining how much money you have to put down if you are asked to, what kind of terms you desire and what kind of time frame you would like to set.
Research real estate. This will include looking in the real estate section in areas that you would consider living. Ride through neighborhoods that you are interested in, looking for homes that are currently on the market being advertised as owner finance. Look on the internet for homes that fit this criteria. The newspapers in some areas offer online access to additional real estate that is available for sale by real estate companies, as well as seller direct homes.
You will then need to communicate your terms and conditions to the seller in an effort to get them to agree to and accept the terms. This will need to include the purchase price, the established timeframe, the costs to be paid by both the seller and the buyer and any other term that you and the seller may feel are vital to making this contract work. Just remember that since this is a non-conventional method, you may have to accept terms that the seller wants, like a request for the full purchase price at the end of a specific time frame and limits on certain uses of the property. This is the time to prioritize and realize that the goal is eventual ownership of this piece of land.
After all this is done, it is time to sign the contract. This contract may be in the form of a lease purchase, agreement for deed or a mortgage, often depending on the terms of the agreement and how much you are willing to put as a down payments. The important thing is to make sure the documents are witnessed and that all parties receive a copy of the documents.
At this point, you will be well on your way to owning a piece of land that you can use for your own individual needs!