(what we use by default)
There are huge advantages to financing your property with us via a Land Contract. Once a Land Contract is signed, the buyer gets immediate Equitable Title while we maintain Legal Title during the length of the loan. We are happy to give many perks to our customers due to the absence of extremely costly middlemen (Title, lawyers, etc.), time delays (e.g. 30-60 days via escrow), and the ability to be extremely flexible with the deals themselves. We have the most customer friendly Land Contracts in the real estate industry offering the following benefits:
- $99 down payments – Using a Land Contract allows us to wave the need for a large down payment. You pay this $99 when you secure the property, and it acts as both an earnest payment and a down payment.
- No interest – Unlike banks, we don’t need to make our money from collecting interest payments. We pass these savings onto you. For example, the typical house loan costs more than double the initial purchase price over the life of the loan — due to interest. The purchase price on our properties is all you pay over the term of the loan and nothing more.
- No debt collectors – If you decide that land ownership just isn’t for you, we won’t make you pay the entire contract. We will simply terminate the contract and put the parcel back on our inventory.
- Total Flexibility – If you need to change the length of the contract or frequency of payments, we can accommodate you. If you want to pay off the contract early, there are no penalties whatsoever. We want you to be our customer for life and will accommodate you in whatever ways we can.
- No costly third-parties – Traditional loans (e.g. Deed of Trusts, mortgages, etc.) through third parties can cost thousands to implement, and if problems arise they are more time consuming and costly to resolve.
- No credit requirements – We are able to finance for you even if you have little credit history or bad credit. There is absolutely no credit report required!
- Satisfaction Guaranteed – If, for whatever reason, you don’t like the property you purchased on contract we will allow you to apply the money you’ve already paid to any other property in our inventory.
Deed of Trust
(by request only)
A Deed of Trust is another option to finance your property that involves third party involvement. We also offer this as a financing option on all of our properties but with the following conditions:
- Buyer pays for closing– We are not big believers in paying $1,000-$2,000 on insurance that offers almost no protection.
- 30% down payment- Since it is more costly and difficult to foreclose on a defaulted loan, a higher down payment is required to minimize losses.
- 5% APR– Interest is added to improve the value of using this loan instrument.
- Fixed terms– Once a Deed of Trust is entered into, it is very difficult to modify the terms since it is recorded with the county and involved a third party brokering the transaction.
- No Satisfaction Guarantee– It would take weeks/months and thousands of dollars to modify the terms/transaction so unfortunately we cannot easily reapply payments to other properties in our inventory.
Here’s the good news: this is standard financing, with the exception that we are still charging a lower interest rate than most Seller financiers!