BUY LAND Easy and Cheap...

Summary

In this video, Wayne Turner shares practical advice on how to purchase land with no credit using owner financing, a method that allows buyers to bypass traditional bank financing. He discusses key steps like negotiating terms, verifying zoning and deed restrictions, ensuring proper surveys, and checking for title issues. Wayne emphasizes the importance of due diligence, including flood zone assessments and land inspections. The video provides tips on how to secure favorable financing terms and protect your investment, offering a step-by-step guide for aspiring landowners looking to buy without the barriers of conventional credit checks.

Takeaways

• 😀 Owner financing is a fast, easy, and affordable way to buy land, often without needing credit or a traditional loan.
• 😀 A down payment, usually 10%, is required for owner financing, with the terms (interest rate and length) being negotiable between buyer and seller.
• 😀 Be sure to get everything in writing, including the purchase agreement and permissions to develop the land, to avoid any surprises later.
• 😀 Always request to see the deed restrictions, covenants, and zoning regulations to understand what is and isn't allowed on the property.
• 😀 If the land is listed by a real estate agent, you can still ask for owner financing, even if it's not explicitly offered.
• 😀 Surveys are important to ensure you're getting the correct land size and avoid encroachments or disputes later. You may need to get a new survey if one isn't provided.
• 😀 You should always check property taxes and lien records, and consider hiring a real estate attorney to oversee the transaction to avoid legal complications.
• 😀 Understanding flood zones is crucial—some areas might require flood insurance, particularly if the property is located in a designated flood zone.
• 😀 Properties may have hidden challenges, such as rocky terrain. You can conduct a geological survey to better understand the land's composition.
• 😀 A title policy is essential when buying land to protect against hidden legal issues, such as back taxes or unknown liens, from previous owners.

Q & A

What is owner financing, and how does it work when buying land?

Owner financing, also called a land contract, allows the seller to act as the lender. The buyer makes a down payment, typically around 10%, and then negotiates the interest rate and monthly payments directly with the seller. Payments can be spread over 10 to 20 years, making it more affordable for buyers but costing them more in interest over time.

Do you need good credit to buy land with owner financing?

No, you do not need good credit to buy land with owner financing. Most sellers don’t check your credit, and since you’re putting down a 10% deposit, they assume you have the ability to make the payments. If you don’t, they keep the land and the deposit.

What should be included in the written agreement when buying land with owner financing?

The written agreement should clearly outline the purchase terms, including the down payment, interest rate, monthly payments, and the length of the contract. It should also specify what you can and cannot do with the property, so you're protected from potential restrictions or issues.

What is the importance of getting a property survey before purchasing land?

A property survey helps confirm the size and boundaries of the land you’re buying, ensuring you’re not getting less land than you thought. It also helps identify any encroachments or legal issues with neighboring properties. Without a survey, you risk purchasing land with undisclosed problems.

How can you avoid problems with deed restrictions when buying land?

Always ask to see a copy of the deed restrictions or covenants on the property. This ensures that you are aware of any limitations, such as whether you can build a certain type of structure or keep livestock. It’s essential to verify this information before finalizing the purchase.

What are the potential issues with purchasing land in a flood zone?

If the land is in a flood zone, you may be required to buy flood insurance if you finance the property. Even if you don’t have an issue with flooding, you should understand the flood risk before purchasing, especially if you plan to build or develop the land.

What is the difference between flood zones A, B, C, and X?

Flood zones A and B indicate higher flood risk, with A being the most risky. Zone C is more stable, and Zone X is the least likely to flood. Understanding the flood zone of a property helps you assess the risk and the potential need for flood insurance.

Why is title insurance important when buying land?

Title insurance protects the buyer from future claims on the property, such as back taxes, liens, or encumbrances. It covers the title from the date of purchase and ensures that you legally own the land free of prior claims.

What steps should you take if the seller doesn’t provide a survey for the land?

If the seller doesn’t have a survey, you can request one, or you can access the county’s registered deeds office to obtain a recorded survey. A real estate agent can also help you find this information to ensure you know exactly what you’re buying.

Can you negotiate owner financing terms even if it's not listed as an option?

Yes, you can negotiate owner financing terms even if it’s not explicitly listed in the property listing. You can ask the seller or the real estate agent if they would consider owner financing with a 10% down payment and flexible payment terms. Asking is key—many sellers may be willing to accept such terms.