How to Buy Land with No Money Down

Summary

In this insightful real estate video, Wayne Turner shares his 30 years of experience, teaching viewers how to buy land with little to no money down. He explains the process of negotiating with property owners, securing owner financing, and ensuring the land can be financed in the future. Turner also advises on the importance of getting an appraisal, survey, and title policy to protect buyers, all while minimizing upfront costs.

Takeaways

• 🏡 Wayne Turner, a 30-year real estate veteran, shares his experience on buying land with little to no money out of pocket.
• 💰 You can own a property without an initial cash outlay by arranging owner financing, where the owner carries the note.
• 🔍 Finding land involves contacting the owner directly, even if there's no 'For Sale' sign; negotiation is key to finding a deal.
• 📝 The value of land is subjective and depends on what a buyer is willing to pay and what a seller is willing to accept.
• 📉 To establish the land's value, an appraisal can be obtained, though it's not mandatory for a no-money-down deal.
• 📋 When negotiating, consider offering more than the asking price over time through a financed agreement instead of paying upfront.
• 📝 The seller may finance the property, allowing you to make monthly payments over an agreed term, often up to 30 years.
• 💹 Fixed interest rates are typically used in owner financing deals, but the rate can be negotiable depending on the seller's preference.
• 🏞 Ensure the property is suitable for your intended use by checking for encroachments, wetlands, and flood zones.
• 📐 A survey is recommended to confirm the property's boundaries and buildable area, even if it adds a cost to the no-money-down strategy.
• 🔒 A title policy is important to protect your investment, ensuring there are no liens or issues with the property's title.

Q & A

What is the main topic of Wayne Turner's video?

The main topic of Wayne Turner's video is about buying land with little to no money out of pocket using owner financing.

What does Wayne Turner suggest for those who want to buy land with no money down?

Wayne Turner suggests finding the owner of the desired land and negotiating a deal where the owner is willing to finance the property with a set interest rate over a long term, allowing for no money down.

What is the importance of ensuring the property can be financed in the future according to Wayne Turner?

Ensuring the property can be financed in the future is important because it allows for flexibility in case the owner needs to sell the property or refinance it, and it also impacts the property's value and marketability.

How does Wayne Turner propose to find land without a 'For Sale' sign?

Wayne Turner suggests finding out who owns the property, regardless of whether it has a 'For Sale' sign, and then contacting them directly to ask if they would be willing to sell.

What is the role of an appraisal in the process described by Wayne Turner?

An appraisal helps determine the exact value of the property, which can be useful for both the buyer and the seller to agree on a fair price, even though the buyer may not need to get an appraisal if the seller is willing to finance the property.

What does Wayne Turner mean by 'owner financing' or 'carrying the note'?

Owner financing or carrying the note means that the property owner agrees to finance the property for the buyer, allowing them to make monthly payments over an agreed-upon term without needing a traditional loan from a financial institution.

Why might a seller agree to finance a property with no money down?

A seller might agree to finance a property with no money down to sell the property more quickly, to potentially get a higher price over the long term through owner financing, or because they believe in the buyer's ability to pay over time.

What is the significance of the interest rate in owner financing?

The interest rate in owner financing is significant because it determines the buyer's monthly payment amount and the total amount paid over the life of the loan. It also represents the return on investment for the seller.

How does Wayne Turner suggest ensuring the property is suitable for future financing?

Wayne Turner suggests making sure that the structure placed on the property can be financed into one mortgage, and that the property is not in a flood zone or wetlands area, by checking the FEMA map and getting a current survey.

What additional costs should a buyer consider when buying land with no money down?

Additional costs a buyer should consider include the cost of a survey, an appraisal if needed, a title policy, and any fees associated with the closing process, even though the initial down payment may be avoided.