Building CashFlow with Land |

Land Man

Show Notes:

  1. Introduction to owner financing in real estate 
    • Definition and basic concept
    • Benefits for sellers: recurring cash flow, tax minimization, increased returns
  2. Why land is ideal for owner financing 
    • Less risk compared to properties with structures
    • Difficulty in obtaining traditional financing for land purchases
    • Higher interest rates and favorable terms for sellers
  3. Strategies for successful land investments 
    • Aim to recoup principle within 12 months
    • Value-adding techniques: buying at a discount, subdividing parcels
    • Example of subdividing a parcel into 6 pieces for profit
  4. Listing land for owner financing 
    • Offer as a secondary option to cash purchase
    • Example of how to frame the listing
  5. Terms of owner financing arrangements 
    • Down payment requirements (15-25%)
    • Interest rates and amortization periods
    • Flexibility for larger loans
  6. Vetting potential buyers 
    • Using credit and background check services
    • Criteria for accepting or declining applications
  7. Importance of loan documentation 
    • Choosing the right instrument (Deed of Trust, Mortgage, or Land Contract)
    • State-specific considerations
    • Consulting with a real estate attorney
  8. Selling land notes 
    • Criteria for maximizing resale value
    • Platforms for selling notes
  9. Servicing the note 
    • Using loan servicing companies
    • Importance of straightforward foreclosure laws

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