Owner Financing Explained

Written by: Go West Lands

Texas born and raised on a west Texas cattle ranch, I love land and everything involved with the outdoors. We strive every day to be the best vacant land investors in the world and helping people own their own piece of the American Dream!

Date: September 26, 2019

So, you’ve received a low cash offer on your land, but you want to make more on the land! You also know that selling raw land at market value can take a LONG TIME and you just don’t want to deal with the realtor fees, tire kickers, etc.

Owner Financing is when an owner of a property decides to sell their property to another party over time in installment sale fashion. Does this sound familiar, it should! With this technique you are THE BANK! The new buyer would pay you a down payment at your specific agreed upon price and then would pay down the principal and interest on the loan over time to you.

The best thing for many people is to provide Owner Financing for their property. This allows two things 1) It allows you to get the highest price for your property, we all know the time value of money, and because you are willing to allow your cash to come in slowly, you should be rewarded with a higher price 2) you can start profiting today on the equity you have built in the property today and for years to come!!!

Here is a simple example of an owner financing deal.
Sales Price = $30,000
Down Payment = $3,000 or 10%
Financed Amount = $27,000
Payment Length in Years = 10
Interest Rate on Note = 10% on the $27,000 Note
Monthly Payment to Seller = $356.81
Total Monthly Payments = 120
Total Note Interest Paid = $15,816
Total Money Received by Seller = $45,816

If you have a parcel of land that you are looking to sell, your chances of selling at a high price for cash is a tough sell in late 2019 and into 2020. But the opportunity to sell via owner finance is just starting!

Here at Go West Investments we are able to work with sellers to sell their land for cash OR partner with them to help get the most cash flow for their land!!! Feel free to email or call us today. We’d love to get your property moved and cash into your pocket, either today or in the future.

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