Owner Financing Raw Land

Following

1) get attorney to draw up docs, record mortgage etc.

2) get the environmental sowed up tight. If they spill something, cause environmental issues, build on wetland etc and you have to take back the property it’s on you to clean it up.

I’ve heard of advantage for the user, but what might they be for the seller? I’ve heard of the ability to reassume ownership in event of a missed payment. That seems attractive.

I would want at least 10% down to consider it.

How much land are you talking? Ag land? Like 5 acres to build a house? I would absolutely never recommend allow someone to build anything on it.

Why are you attempting to owner finance? Many owner finance deals are done because the buyer can’t otherwise get a regular loan, and therefore it’s not a great loan for the buyer as it’s their only option. You as the seller have to make the terms completely in your favor and you have to be damn ready to take the property back/ evict them.

People with bad credit have bad credit for a reason.

quote:

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big downpayment, you get to keep the downpayment + payments if they default

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This is correct. Which means you have to be morally strong, have a good contract you both agree on, and are willing to take a shite ton of someone else’s money and kick them out if things go sour. Again, with owner financing that’s much much more likely to happen.

It’s a great way to make a crap ton of money if you have moral flexibility.