• Building CashFlow with Land |

  • Aug 1 2024
  • Length: 11 mins
  • Podcast

Building CashFlow with Land |

  • Summary

  • 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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