You may have seen this advertised as a way to purchase land, but did you know that it can also be a great option for those selling land? Basically, you still hold ownership of the property, but by utilizing owner financing you can also gain a great deal of profit on your vacant land. Sellers can make several creative financing arrangements to suit the needs of the buyers, as well as your own. While you may be financing the entire loan for some buyers, others may need to finance only a portion of the transaction. In either case, you’ll want to settle on an initial down payment amount before the financing period begins. In this post, we share the Top 4 Benefits of Using Owner Financing to Sell Your Land in Arizona.
*Before we get too far into it, we want to note that it is advisable to seek legal counsel to ensure that the contract you draw up for this process protects both yourself and the buyer in the transaction.
1) Non-Negotiable Price
One of the benefits of using owner financing to sell your land in Arizona is that you are sure to get your asking price as if you set it in stone. You hold the advantage. The borrowers are willing to pay extra for the opportunity to enjoy the benefits that property ownership brings. If land prices drop, you benefit from selling at a profit and gain the interest earned during the life of the loan. If prices rise, the buyer may achieve an increase in equity when they refinance the property.
2) Current Cash Flow
The monthly payments towards interest on the loan will add cash monthly to your regular income, which is an attractive benefit of using owner financing to sell your land in Arizona. And the return on your investment is typically higher than with most fixed-income investments. As the downpayment is negotiable, you’ll receive an extra cash boost when the buyers close. You can even negotiate periodic payments to help the buyers meet your demand for the downpayment of up to 20 percent or more over time.
3) Quick Closing
One of the benefits of using owner financing to sell your land in Arizona is that you can skip all of the red tape associated with traditional mortgages. This speedy process means your land will sell and close fast, which is a plus to buyers who are excited to move forward with their plans. The ability to close in 30 days or less may even make your real estate stand out among many to a potential buyer.
4) Buyer Pool
By offering seller financing, you open the ability to purchase to a whole new market. Having more potential buyers for your property is an excellent benefit of using owner financing to sell your land in Arizona. As buyers are entering the market, all too many may now find themselves with less than perfect credit. This status prevents them from financing through conventional lenders. Also keep in mind, that many traditional lenders hesitate to offer loans for the purchase of vacant land. This underserved sector of potential land buyers is where you can step in as a seller and offer a beneficial solution to you and the buyer.
Investment Land Alliance fully understands the benefits of using owner financing to sell your land in Arizona. If you would like to learn more, Investment Land Alliance is happy to answer any questions or concerns you may have, with absolutely no obligation. Or if you’d prefer to just sell your land and walk away with the profit, we can help you that way as well. Call Investment Land Alliance at 480-779-8444 or send us a message today!