Chirag:
Sure marketing and selling to land lot with owner financing will make is FAR easier to procure a buyer.
You will want to be certain to pre-screen any buyers you intend to finance so that the owner financed land contract “paper” could be converted into a cash sum if you choose to pursue that option.
If the buyer places a mobile home on that property - you DON"T own that mobile home and in the event you had to foreclose in the future for non payment on your land contract you would still not own that mobile home unless you worked a deal out with the owner or reposessing lender that may have had a loan against the mobile home.
With land collateral its wise to get a much down as possible - since this type of collateral is much harder to sell if a lender were to have to take it back.
There are some paper buyers / funders that will consider smaller deals (At Sunvest we certainly will) and would be interested in your land contract “paper” secured by that improved land lot.
How to structure the land note? - Posted by Chirag Patel
Posted by Chirag Patel on August 01, 2003 at 16:07:43:
I own 2.6A of land in Michigan. Local real estate agent suggests that it should get sold b/n 25-30k. Someone who wants to put mobile home on it would be interested in buying that land because for another 75-85k he can get mobile home and overall he can get nice mobile home and land for nearly 100k. There are few mobile home near to this land and that is the reason realtor is making this suggestion.
He also suggests me that if I sell it on land contract, I might be ablle to sell it faster. Once buyer puts mobile home on the land and if in future he defaults, I can forclose and can have land + mobile home…making my risk much lower.
Does anyone have any suggestion to best structure the deal? Does it have any good chances of getting cash by doing simultaneous closing? Even if I dont do simultaneous closing, what would be the best way to structure the deal so that land contract can have good marketable value in the future?
Does institutional note buyers even look at the deals so small (25-30k range)!!
Thanks,
Chirag