Excellent Situations for Selling land on Owner Terms or Contracts

The dialogue here isn’t an attempt to deal with all possible scenarios, but will shed light on some of the more common difficulties. For these and a number of other problems, there’s a remedy.

SELLING SCENARIO 1 You have a piece of property near a homeowner’s property as well as their son wishes to buy the land to be alongside his parents. The son does not have a good down payment (a ‚great‘ down payment is anything in the area of10percent of the purchase price or higher). The best solution would be to sell the land as a ‚lease to buy.‘ The purchase cost is $10,000, making the down payment $2,000. You consent to collect $200 per month in the son or daughter for 10 months, applying this amount towards the down payment, and then sell to him to a contract for the remaining $8,000. Problem solved. The son can live near his loved ones, and you get a monthly revenue stream.

SELLING SCENARIO 2 you’re selling a property and while the prospective purchasers have a excellent consistent income, they don’t have lots of money for a down payment. They would like to develop the land gently with their own money on their own time as they gradually collect the necessary capital, and you would like a monthly revenue stream. In this circumstance, you and the purchaser enter a type of loose partnership. You gain from this since the property is improved without charge to you.

SELLING SCENARIO 3 The possible purchaser for a parcel of land you’re selling has no money for capital improvements and can only make very minimum monthly payments. Due to these factors, you choose not to sell the land and rent it out instead. You make the capital improvements on your own time period and also for your own discretion while accumulating monthly property rental payments. When the improvements are completed, you’ll have the ability to sell to the buyer on a owner arrangement, but with a higher cost because the improvements make it even more valuable, useable, and in demand. Once more, the buyer is getting a better property without any costs or risks to him. You get monthly payments during the improvement period and a higher payment once the improvements are finished.

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