One of the most common questions I get is on interest—–
How much interest do you charge? Maybe you feel kind of like this guy….
So, let’s say that you buy a piece of property and you do owner financing. This means that I am providing a loan to you so that you don’t have go to the bank.
As a matter of fact, most banks WON’T even lend you money on raw land. They won’t do it.
As a land seller, I want to make it easy for ANYBODY to buy land from me. I’m not selling it always for cash. Sometimes I do, and those people get a discount in price– usually $1,000 to $2,000 versus someone who is paying me monthly.
When I lend to someone, this is a huge sacrifice and a risk because let’s say I buy a piece of land for $5,000 and you pay me $150/month, assuming you pay on time and never miss a payment, it will take me 2.5 years before I get my investment back. If you do miss a payment or two or three, it could take much, much longer.
Because of that time delay, I charge interest.
I WANT you incentivized to pay off a property as quickly as possible, to put down the largest downpayment as possible in order to get my investment back.
So, I decided to charge interest on the loan I am making you.
If the loan is 2 years or less, I charge 5%. If the loan is 3 to 4 years, I charge 8%. If the loan is 5 to 8 years, I charge 10%.
You can use a calculator like this one to play around with the loan amount to figure out a monthly payment that can work for you and for me.
Why go with a higher interest loan?
Some people don’t have the money available to make a large downpayment or they have a fixed budget, but really want to own their own piece of land. Maybe they’ve had a tough time in the past and had to declare bankruptcy- they can’t get a loan from anywhere.
The bottom line ———–>>>> I’m happy to help you with your dream of owning land.
No matter your situation, no matter what you’ve been through. If you can make a $249 downpayment and ongoing monthly payments around $100, I have properties for you.
After all, land doesn’t disappear. God isn’t creating any more of it…. except maybe in Hawaii. =-) Land is stable and can be counted on. You can use it for recreation or to build your dream home. Maybe you want to get off the grid. Maybe you want to escape the craziness of a major city..
Maybe you want to own land in the cooler parts of Arizona or in the mountains of Colorado or hiding among the trees in Oregon, there is a property out there for you!
Let me know what I can do to help.
Feel free to reach out to me at any time— 775-234-2058.
Land for Generations to Come,
Dave (& my better half- Cyrena)