Landed Ground Financing: Our In House Financing Option
Since most people don’t usually have thousands of dollars laying around to make a land purchase, we offer very reasonable and very favorable Landed Ground financing on most of our properties. This article will explain the process, and give you some more detail on our In House financing agreement. We will refer to the Landed Ground In House Financing as the “Installment Agreement” throughout this article.
How it works, step by step:
1.) You place the Deposit from the listing with us on the property you would like to purchase using one of our accepted payment methods (Zelle, Venmo, Cash App, Bank Wire, or checkout from the landedgroud.com website.
2.) You Text or Email us to confirm the Exact Name(s) You Would Want On the Property, A Unique Email Address for each person, and a the best Street or Mailing address for you. Doing this makes sure there are no mistakes on the paperwork.
3.) After We receive the Down Payment and the above information we will prepare your installment agreement. We will then send it to your email Via Docusign online signing software within one or two business Days.
4.) You approve the agreement, and have the option of enrolling in Free ACH Autopay. This option will make your payments Automatically every single month so you don’t have to remember, or write checks, buy stamps, mail etc.
5.) Your payment is made every single month of the agreement. After All payments are made we will Record a Deed with the county Conveying the property to you.
It really is that simple!
More Details:
If you have never bought land before, or are accustomed to a traditional home purchase with a mortgage, there are a few key points to understand about Landed Ground Financing.
Unlike Many Loans:
We Do Not Check Your Credit
We Do Not Have Any Prepayment Penalty. You can Pay your property off at anyime.
We Do Not Report Your Payments to the Credit Reporting Bureaus
You are Not Personally Liable for the Balances Owed On Our Properties
Instead, we offer a model of Owner Financing More like old fashioned “Layaway” than getting a loan. We call this the Installment Agreement, and its much simpler than getting any kind of loan, since there is no credit check or application. With the installment agreement you agree to:
Make Your Payment Every Single Month
Not Live on the land, Store vehicles or materials, or Start Construction while it is being paid off.
Keep us updated on your current address and contact information
In return, we have several Obligations Under the Installment Agreement, among them:
We have to Sell the Property to You Under the Terms of the Agreement. If the property values go up significantly in coming years where your property is, we are Locked into selling the property to YOU at the negotiated terms. This is a huge advantage to YOU, and its why very sophisticated Real Estate professionals like Homebuilders, Developers, and Real Estate Investors LOVE this arrangement. It allows you to Control a property without putting that much money into it.
We can not modify or change the property, or encumber it. We will not sell timber off the property, or pull out loans against it.
After All Payments are made on the property, we will Record a Deed with the County transferring the Title to the Property Into Your Name. After the Deed is Recorded, You are then free to use the property, and start construction if you wish.
We do not charge any additional fees then are what are in the agreement. No surprise bills or fees from us.
Some Other Thoughts on the Installment Agreement:
Our Installment agreements are generally flexible. For instance, they allow you to assign the agreement to someone else. In practice, this means you could add a family member to the property down the road. OR, Investors like this arrangement because it allows them to Lock in the property and then they Can Then Sell the property to someone else. The way this works: An investor gets a property locked into an agreement, they Market the property themselves, and sell the property for More than the price in our agreement. They then Pay In Full the balance of the agreement, and we transfer title to them, or their assignee. This is OK with us, since we are a volume land seller and often our properties are being sold BELOW MARKET.
The Installment Method is Not For Everyone: Who is this Not For?
Someone who has no income. If you don’t have enough money coming in every month to make the payment on an installment agreement, we don’t recommend you use this method.
Someone Who Needs to Live on the property while paying it off. We do not allow this, and the Counties we operate in do Not Allow anyone to permanently reside on a property without construction of a permitted residential dwelling.
Someone who does not pay their bills. The way the installment agreement works, you must pay every single month to keep the agreement active. If you are someone who doesn’t pay their bills, and you stop paying, the agreement is cancelled.
To sum it all up, its all pretty simple. You simply make the payment every month, and at the end the property is all yours. We hope this explanation is helpful to you. If you still have questions, you are always welcome to call us 24/7 at (323) 800-8379. Alternatively, if you are ready to move ahead on purchasing one of our properties, feel free to proceed to the listing or get in touch with us to get the process started.
Thank You!
