Ep. 3 No Cash đź’°?! No Problem! Let’s Talk Owner Financing!

In this episode of Land Stories…

Do you want to buy land but don’t necessarily have the upfront CASH 💵? No worries! Dave explains the ins and outs of financing land with Generation Family Properties.

With the affordable financing option, Dave helps you understand how owning a beautiful estate like our Oregon property located in Klamath Falls Forest Estates, can be YOUR reality.

Blog Post Mentioned:

https://www.genfamproperties.com/how-much-interest-do-you-charge/

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Have Questions? We’d love to hear from you!

welcome to the Land Stories podcast where our goal is to help everyday people like you own land. And now your host, who is an eagle scout that is horrible at tying knots, Dave Denniston.

Dave: all right my friends. Well, welcome to Land Stories Live episode three. Today, we’re gonna be talking about how we finance land, we are gonna be talking about a beautiful property out in Klamath County, Oregon. My name is Dave Denniston. I am the owner, along with my beautiful bride Serena, of Generation Family Properties LLC. And our goal, the whole reason we started this company, is we wanna help hundreds of people just like you to own land. And most of all, we hope along the way we can tell your land story. And so my friends, with this episode today, I wanna tell you a little bit about Klamath County, Oregon, a property we have there.

And then we’re gonna talk about how we finance land and how that works and what you need to be aware of. So, I’m gonna go ahead and share my screen here with you. And so what we have here in front of us, is we have our website where we are featuring today a two and a half acre property in Klamath County, Oregon. Klamath County one of my favorite places, this particular property is in a subdivision called Klamath Forest Estates. You notice here on this particular land it’s fairly flat. There are some older trees and there’s quite a few newer trees that are growing on this property. This one it’s priced at about 9900 dollars cash that you can see.

It’s near the Freemont National Forest BLM land and if we scroll down here a bit further you see we got a video on the website. So, you’re gonna wanna make sure to check that out. Really great for someone who loves the outdoors. You can see that there are a home or two around but not a whole lot. Let me go to the google map here. So, the property starts down here. It goes up there, that’s about the northwestern border of it. You can see that there is a neighbor here across the street but nobody here to the east.

If we scroll out a little bit here, you can see there’s lots of roads, really well maintained. So, there’s great access getting to this particular property. That’s off of Mountain Quail Lane. You notice here this is Sprague River Drive. This is the main drag that takes you into Klamath Forest Estates. You can see it goes long here. Things are pretty well-defined west to east. About I think it was about three or four years ago, there was a fire that went through the area. If we look at some of these pictures, I think you can even see where some of the burn was. About right over here, you notice there’s a bunch of trees that have no leaves on ’em. That’s because of the fire that happened in that area. And this particular property was not touched.

Lots of grass, easy to get to. If you scroll out a little bit further on our google map here, you’ll see this is the Sprague River. We have in the past on quite a few properties here, there’s a small town up Sprague River that is out over this way. There is also the town of Beatty that’s around. Go a little further west here, there’s Chiloquin, there’s Agency Lake up here and Klamath Lake and then down to Klamath Falls. So, if you look where this property is at, you can see here it’s up here. There’s Klamath Falls, there’s Chiloquin, there’s the Town of Sprague River. If you look around here, it’s pretty sweet.

You got the National Forest that’s really close so some great hunting and stuff you can do up there on BLM land. And not too far away is Crater Lake. So, we take a look here there’s Crater Lake not too far away. Scroll a little further out, you notice here this is the border of California. Here is Eugene, Bedford is the closest big city, I would say, relatively. Here is northern California, Reading; Eureka. You go a little further up here, you can see that’s the way up to Portland and down over here is down the way to Sacramento and so on. So, great location, off grid, you still have plenty of trees on this property. You notice you get kind of east here and it’s pretty deserty. So, that’s what I love about it and this particular area. Now, for this property, you’ll notice here we have some good information. One of the things about Klamath County that I really like is that they do allow mobile homes and tiny homes. And it’s a 300 square foot minimum.

So, those of you that are tiny home lovers, you wanna have a tiny home, this is a great place to build. Again, pretty easy to build. There’s not a whole lot you have to clear on this property. And taxes are only 52 bucks a year, that’s it. Can you believe it? 52 dollars a year for property taxes. Here you notice that we do have it priced out. We have a discount cash price so if you’re wanting to pay outright, we can do 10,000 dollars and we are willing to negotiate some, nothing crazy, but we are willing to negotiate if you are looking to sell for cash, paying outright.

Now, if you don’t have all the money right now, you don’t have 10k in the back or 9700 dollars in the bank, you can do owner financing. And I’m gonna talk about what financing looks like and how that works here in just a moment. This particular property, we’re looking for 11,000 dollars of the owner financing price, plus interest. So, it’s about 11,000 dollars plus interest and we’re looking for 500 dollars down, which is composed of a document fee which is 249 dollars, which isn’t included in equity. And then you do put in 251 bucks of equity. So, you’d be financing about 10,750 dollars is what’s remaining. And we’re looking for about 180 dollars a month as a minimum. Now, you notice here I don’t talk about the length or how that might work for the property. And so we’ll talk about that again here in a little bit. Now, you’ll notice we have quite a few pictures here on the website but we do have available here in our google drive.

Dave [interval]: have you ever dreamed of owning land? Have you wanted a place to escape, to unwind; to relax? Well, my friends, owning land can be more than just a financial investment. Land can become a place of bonding and relaxation for your entire family and that’s why Generation Family Properties and I want to be part of making your land dreams come true. Beginning November 1st all the way through the end of the year, text freeland, that’s f-r-e-e-l-a-n-d all one word, not two words, just one word freeland to 44222. Again, text freeland to 44222. Why? Because you will be entered into a drawing to win 5 acres of land in Colorado, that’s right, 5 acres of land in Colorado completely free, no strings attached, no hidden terms, just a simple gift from us to you. Text freeland, again f-r-e-e-l-a-n-d, all one word, to 44222, between now and December 31st and you will be entered in a drawing to win and you’ll have other opportunities by doing a few more things to win as well and now back to the show.

So, one of the things that we keep in our google drive is some of the GIS map screenshots so you could see the outline of the property. So, you can see there’s Mountain Quail Road, Sprague River Drive. You can see here’s what the boundaries look like, so it’s a skinny lot. We don’t own this lot to the west, we don’t own this lot to the east or the one north. That’s off of Steelhead, if that was something that you’d be interested in doing is buying more than this one lot, just let me know. Even though we don’t own it, we could definitely look into trying to buy it for you. So, we do have a bunch more information on this property, a whole bunch more pictures, as you can see and we would love to share that worth you so just make sure to reach out to me: contact@genfamproperties.com. So that’s c-o-n-t-a-c-t-@-g-e-n-f-a-m-p-r-o-p-e-r-t-i-e-s.com.

So, contact@genfamproperties.com or just give me a call or send me a text: 775-234-2058. Again, 775-234-2058. All right, we’ve talked about a property. Next thing I wanna do is talk about a blog post that we have available on our site that gets to some of the owner financing. So, how does the owner financing work? And there’s a lot of different ways that people slice and dice this. Some people that are friends and competitors, they charge what they call quote-unquote zero interest but what that means essentially is they’re inflating the price to get there. And a lot of my competitors won’t allow you to pay it off early. They’ll even penalize you if you choose to wanna pay it off early. And I decided early on that there was just so much harder to do that way and frankly, I would rather someone pay me off early if they’re able to.

And so in this blog post, I encourage you to go to the website and you can check it out. You can see here’s the URL for it. You can just click on the blog section is here as well and you can get to it or if you search for interest, you could get to it that way too. So, in this blog post what I talk about is I want to incentivise you as quickly as possible to put the largest down payment down so I can get my get my money back. So, for example, what happens is we end up paying quite a few thousand dollars for a property and we wanna get that money back as soon as we can. And so what I do is if between a down payment and a monthly payment, if you’re gonna be doing two years or less, we charge five percent and no prepayment penalties if you’re gonna do it that way.

If you’re gonna do three to four years, we’re gonna do eight percent. If you do five to eight years, we charge ten percent. So, what we have here we have a handy dandy link to a calculator if you ever wanna check it out. So, let’s say we’re looking at this Klamath County property and let’s say you’re financing this amount. If we take the terms, let’s use eight years as an example, we’re gonna use a ten percent interest rate. And so when you finance it, you notice here that the principal and interest payments is around 167 dollars a month. So, what happens is every month as you start out, you’re paying more interest and then the principal grows.

Now, if you make an extra payment, you can speed this process up and there’s no penalty for doing so. And some people wanna do that. Instead let’s say you did it over two years. Let’s make it a five percent interest rate now cause you’re doing it over two years. You can see that the monthly payment is significantly higher. You’re looking at 480 bucks a month and that’s just the principal and interest. What we tie in with the monthly payment is the property taxes. So, you notice here, this is 52 dollars a year. So, that’d be about five dollars a month. And then on top of that, we do charge what’s called a note servicing fee because my bookkeeper just loves me and all of these monthly payments people are making. And so we got to pay her and make sure that I can keep focused on buying and selling land and not on all the bookkeeping we have to do. So, we charge a note servicing fee as well.

So, that might be another five to ten dollars a month, depending upon your payment and the area and the work involved for my bookkeeper and the credit card processing charges. So, we tie that generally in as well. Every so often we might have a sale, we might have a special opportunity where we might waive that or lower that or whatever but for the most part, we do charge a note servicing fee, somewhere in the neighborhood of four to ten bucks for a property. So, if we looked at an example here for this particular situation, again if we do a bare minimum. Let’s say this was 166 a month plus another five dollars in property taxes. Now we’re at 171 and then another eight dollars in note servicing, we’re at about 180 a month, which is how we get this minimum monthly payment.

And again, you could pay more than that and you just let me know and we can get that done. I mean we like to make it as easy as possible on folks so if you wanna look at a specific situation, I am happy to talk with you about it and it’d be an honor to help you find land and talk about what you are looking for. And so my friends, let’s see if anyone has any questions. I’m gonna stop sharing my screen here. I don’t think we have any questions yet today as we’re just getting going with our live show here. Probably over time we’re gonna get more and more viewers hopefully and it would be my honor to answer your questions and figure out how we can help you. Well, again, we go live every Monday at 10:30am. Oftentimes, we’ll have a guest like my wonderful assistant Kristie.

Tomorrow, hopefully, we’ll have Mia on, who is another one of my assistants. And we go live Monday 11:30am central. Tuesdays, 4:30pm central. And I’d just like to thank you for taking some time to watch this video. My name is Dave Denniston. Make sure to check out all of our properties at www.genfamproperties.com and if you’re looking for land and you would like to speak with directly, you can do that at 775-234-2058. Again, Dave, 775-234-2058. Thank you so much. God bless. Have a great day.

Dave [outro]: all right my friends. Well, that wraps up the episode for today. And just remember, it’s just for through the end of December. We would love to give you the opportunity to win 5 acres, 5 acres in Colorado, no strings attached. You can enter completely free as a gift from us to you. Make sure to text freeland, f-r-e-e-l-a-n-d to 44222. Again, text freeland, all one word, to 44222 and we will get y’all entered into the drawing to win 5 acres. All right my friends, we’ll talk to you later. Have a good one, bye-bye.