Owner Financing is a quick and efficient financial tool to allow potential buyers to invest in property while leveraging their money. Investors don’t have to go thought the stress and haggle of applying for a land loan from a financial institution, owner financing lessens the burden and shortens the land buying process.
Banks are often very hesitant on approving land loans due to the low value cost; the few companies that are 100% dedicated to selling vacant lots usually offer in house owner financing. With owner financing, once the loan is payed off, the title work is normally completed within a few weeks and a deed is drawn up and the property is transferred from the Grantor (seller) to the Grantee (buyer). The Land Store uses a Warranty Deed when transferring a property, it is the most secure deed available and is also used by title agencies.
Prerequisites for land financing
Reputable companies that sell land and offer owner financing don’t have such stringent requirements for the owner financing process compared to the endless list of banks and other financial institutions. Some companies, such as The Land Store, don’t require any credit checks or inquires to qualify for owner financing which allows for the automatic approval. This model lets potential customers to invest in their dream property just by signing a standard land sale contract and with a small down payment.
Another added benefit of owner financing property is that all of the research and diligence is done for you. At The Land Store, we run all our properties through a title agency before we even purchase them to ensure that the potential Land Store properties are free of liens, judgments and any other factors that might cause any issues before adding them to our inventory. We also allow you to start improving the land and building on from the first day you start financing.
For example, we had a customer interested in investing in a property to build his primary residence. With owner financing, he was able to secure a beautiful 1 acre property with a $500 down payment, which left him $8,000 to use toward planning and building his home!