Selling a land note?

[RingSteel]

I've received an offer to buy some land that I have for sale, if I owner finance for 10% down, 5.5% interest, 10 year note.

I'd prefer to have the $, as I'm raising capital for another land purchase now.

Does anyone have any advice/experience with owner financing and then selling the land note?

[DUKFVR]

I wouldn't want to mess with owner finance. It is up to you to decide it. Too many things could mess it up.

[Rem40x]

I would rather make the interest than let the bank...

[RingSteel]

I would rather make the interest than let the bank...

I would too, but I need the cash from the sale soon to purchase a larger tract.

[Kelmat]

I would think owner financing would get a higher rate than that.

[C.W.Ashby]

I would too, but I need the cash from the sale soon to purchase a larger tract.

I tell my clients to do what is best for them, not the Buyer. If you want cash, make them go to the bank.

[RingSteel]

I tell my clients to do what is best for them, not the Buyer. If you want cash, make them go to the bank.

That's probably good advice, and I'll likely pass and leave the property on the market.

Thanks.

[ABroussard]

Too much hassle with owner financing imo. I know there are also special circumstances but the way i look at it if someone cant get a bank loan there is a reason why. And I don't want to find out the hard way.

[TeamAmerica]

land is easy to sell. post a link to the realtor listing here.

find a buyer that can get a bank loan,

BTW, those terms you listed would be a heck of a deal for the buyer! Not so much for you.

[J Wales]

I have seen notes like this sell before...there are companies that search the records for owner carry loans and offer to purchase the loan. The problem is, they will discount the amount they will pay you for the note. If you are owed $100k, the will probably only pay you 85-90k.

[Gary Roberson]

If you are owner financing, require at least 20% down. If Sleepy Joe is elected, heaven forbid, land values are going to drop along with everything else when we go into a recession. If you finance it, be prepared for the worst case situation and that is for you to foreclose.
There are lots of institutions that will finance property at great terms and competitive interest rates. The buyer, if qualified should be able to secure financing.
Adios,
Gary

[Shane]

I would bet the land is easier to sell than the note.

[bbqfan5909]

Seems as though your decision is made.

I would too, but I need the cash from the sale soon to purchase a larger tract.

[BrianL]

You basically won't be able to sell that note, or if you do it will be at a large discount.

[RingSteel]

Yes, I think I’ll have to pass on the owner finance.

The land has had the timber harvested, and most feedback is that buyers don’t want to see the brush and log piles. Going to commence shear/rake/burning soon, to remedy that.