Tn Land for sale by owner questions ?

[Grumpy Old Man]

Hi all , FIRST LET ME SAY THIS ,I HAVE NO LAND FOR SALE MY SELF ! But Lately I have been hearing of a large amount of small and large plots of land which are being sold and financed by owner , Super low down payments no qualifying personal mortgages and have talked to a few " buyers " actually its a lease option with all rights and privileges Land contract and you have a closing at the end of the lease and the land is yours , Most are priced right and I've been looking at a few and some are beautiful pieces of land ! these are parcels on paved roads with power and services ,not some piece of land locked, logging trail access cliff side parcel . Have any of you purchased land this way ? be it for a home site of just a get away place ? Many are being sold this way due to the fact that it is so hard to buy unimproved property and have it financed by a regular mortgage and sellers need the income be it from a straight sale or payments and interest

 

[dave1949]

I have not purchased land that way, but if a good real estate lawyer checked out the lease/sale contract, I would think it is okay. These types of sales tend to benefit the seller in that if the buyer stops/defaults making the payments, the seller keeps whatever was previously paid, and still has the land too.

It may be that land sales have been difficult the past couple years, due to financing as you said, and the sellers think this may be a way to get some sales going. Lots for sale have been sitting for a long time now around here.

 

[Deere Dude]

I don't have the answer, :dance1: but was considering very shortly looking for about 10 acres or so in the SE part of Tennessee. I just want to follow this thread.

Hi all , FIRST LET ME SAY THIS ,I HAVE NO LAND FOR SALE MY SELF ! But Lately I have been hearing of a large amount of small and large plots of land which are being sold and financed by owner , Super low down payments no qualifying personal mortgages and have talked to a few " buyers " actually its a lease option with all rights and privileges Land contract and you have a closing at the end of the lease and the land is yours , Most are priced right and I've been looking at a few and some are beautiful pieces of land ! these are parcels on paved roads with power and services ,not some piece of land locked, logging trail access cliff side parcel . Have any of you purchased land this way ? be it for a home site of just a get away place ? Many are being sold this way due to the fact that it is so hard to buy unimproved property and have it financed by a regular mortgage and sellers need the income be it from a straight sale or payments and interest

 

[Sawdustsmb]

I too am interested in following this thread. How the contract is set up and How difficult is it to evict someone after they have defaulted on the sale.

Bob

 

[MarkV]

I've bought land with owner financing. Pretty simple process. The owner and I worked out an agreement and a lawyer drew up the contract. We did a closing at the lawyers office. In my case we paid off the loan in less than a year leaving everyone happy.

As mentioned earlier there are a lot of deals like that around here because it is really hard to get a bank loan on raw land. The land owner has little to lose. He gets a payment each month at an interest rate he could not get with other investments. The buyer is responsible for the taxes, insurance and improvements. If the buyer doesn't make payments for whatever amount of time the contract says the landowner repossess the land and keeps any monies paid up to that time as well as any improvements made. Then he puts it back on the market and starts over. I know a few people who make a pretty good retirement income this way.

MarkV

 

[Fossil Farm]

A good real estate lawyer and a good, thorough title search is a necessity. As long as you can get a clear title and title insurance, it can be a good way to purchase. Some friends looked at purchasing property in coal country, but because of some old coal leases that may or may not still be valid, they purchased elsewhere just to avoid any future hassles.

 

[newbury]

What type plots are they? What's small and large?
I've seen many pieces of land that were broken up and sold in small (10 acres or less) plots. They were originally decent sized pieces of farmland and subdivided into "gentleman farmer" plots. Then when the "gentleman farmer" never gets around to doing any thing with it the plot gets sold again. If it's got power and has been surveyed and you have some use for it go for it.
As far as financing check out the local farm bureau. When I got a loan year ago they were eager to loan.

 

[Grumpy Old Man]

Hi everyone , Thanks for the info and opinions i will do some more checking and let you know what I find on Monday ! I bought my property last year but I was thinking since the land was priced right and easy to buy ,most wanting $500.00 to a $1,000.00 down it would be good to buy for the kids . :thumbsup:

 

[Larry Caldwell]

Hi everyone , Thanks for the info and opinions i will do some more checking and let you know what I find on Monday ! I bought my property last year but I was thinking since the land was priced right and easy to buy ,most wanting $500.00 to a $1,000.00 down it would be good to buy for the kids . :thumbsup:

It's a mistake to give someone something they didn't earn. The kids won't value it. For $500 or $1000 down, let them buy their own, or buy it for yourself and let them buy it from you if they want it, but make them earn it.

 

[Tororider]

It's a mistake to give someone something they didn't earn. The kids won't value it. For $500 or $1000 down, let them buy their own, or buy it for yourself and let them buy it from you if they want it, but make them earn it.

Talk about a gross generalization. In many cases this is true, but you have no idea his family's situation. It really comes down to good parenting, if you do it, they will have been "earning it" their whole life.