Have you ever purchased land, tried for a quick flip, and failed?
Perhaps you've tried to sell vacant land for months without receiving one phone call or e-mail.
That's okay, because there's a way you can turn vacant land into monthly income. And it's not that difficult to do.
(Before we go any further, I'm going to tell you a little about myself, so you can feel reassured that I'm not some sort of Real Estate whiz. I'm 38. I've been buying and selling land for about two years. I don't have a RE license. And I'm a college drop out.)
If you want to turn land into monthly income, this is what you do. I have used this technique to earn a monthly income on some properties that I own. You can, too.
This is what you do:
1) Call a local realtor and find out the value of your land lot. If you feel weird asking a realtor for the value of the land lot as you're not intending to use him to sell your land, you can flip through a local real estate magazine or visit the MLS (Multiple Listing Service) to get an idea of what your land is worth.
2) Figure out, through talking with realtors, brokers, and looking through real estate magazines, what the land is worth. Write this number down.
3) Visit: www.calculator.com. Then, click on "mortgage calculator" button. At the new page, click on "mortgage payment calculator". At that page, fill in the blanks. Basically, you're creating an amortization (mortgage) schedule for your property. This way, you'll receive a monthly income from selling it, and benefit someone who wants to own land but can afford to pay for it in one lump sum.
4) Visit your land lot. Take pictures of the land, using a digital camera. If you don't have one, borrow one from a friend. Offer to help them around the house or some other kind of barter that they value in exchange for them letting you borrow their camera and sending you the pictures via e-mail.
5) Visit:
http://www.totalrealestatesolutions.com/realestateforms/html/
LandContractForSelling.html
Or, visit:
www.totalrealestatesolutions.com and search for contracts.
Print up this contract. Make a few copies, or make a few prints. If you want another contract, search www.google.com for "free contract for deed forms". You might have to dig 5-20 pages back to find one.
6) Go to: www.craigslist.com. Search around for your state and city. Then, click on "real estate". Post an ad for your land lot, something like this:
Own land in ____________ for only _______ a month. No credit checks necessary. Pay off early at any time with no pre-payment penalties. Only _____ lot(s) left. So hurry!
7) Add pictures to the ad. Post the ad wherever you think people might be interested in your land.
8) To sum it up, you're selling your land with financing at a percentage rate that will provide you income every month. You can do this with a contract for deed, so that the buyer doesn't receive the deed unless he pays off the property.
9) Within the terms, I allow the buyer to pay off early without any pre-payment penalties, and I allow them to visit, build, camp, garden on the land while they are paying for it. I've done this twice so far via Ebay and both buyers quit paying on the land. Written into the contract was a statement that if buyer fails to pay after thirty days, I can demand the entire payment due. In both cases, I took back the contract and one is under contract again, and another is due to go under contract soon.
Ironically, both buyers, the original buyers, had different downpayments. One of them paid $102.50. The other had a downpayment somewhere in the area of $1,000 dollars. At the end of the day, I kept both downpayments and their monthly payments.
It's not that I'm happy that they didn't make the payment. To be honest, I wish they had. The outcome though is that the land goes back to the ownership of the seller so he can resell, with financing, to another buyer.
Selling land with financing allows the buyers to buy land with little or no money down and monthly payments that they can afford, and it allows the seller to make a monthly income. It's a win-win.
If you have any questions about doing this, feel free to e-mail me by writing me at bicycledays@yahoo.com.
Thanks for reading and I hope this article helps you.
Kris Kemp
cell: 561-255-2545
Learn how I found and bought a house in Florida for $2,800 and sold it for $20,000. Visit www.FlipFloridaLand.com for a Free Report.
