How Owner Financing Works When You Buy Land From Us

Almost every week somebody asks me some version of the same question. "So how does the payment plan actually work?"

Fair question. Most people have never bought anything on owner financing. They've bought a car through a dealer or a house through a bank, and that's it. So let me walk you through how it works when you buy a lot from us, step by step.

What owner financing means

Owner financing just means the seller is the bank. Instead of going to a lender, you make your payments to us.

That's the whole idea. There's no loan officer, no underwriting, no waiting around for somebody in an office to approve you.

With us there's no application and no credit check. If you can afford the down payment, we finance you. I've had buyers with great credit and buyers who've had a rough few years. It doesn't matter to us. What matters is that the payment fits your budget.

Step one is the down payment

Every listing shows the cash price and the terms right on the page. You'll see the down payment, the one time $249 document fee, the monthly payment and the number of months.

Here's something people don't always realize. A property isn't locked in until we receive the down payment. Talking about it, texting me about it, even telling me you want it doesn't hold it. The down payment does. If two people want the same lot, the first one to pay gets it.

Step two is the paperwork

After your down payment clears, we email you a document package. It includes the maps, photos, the Land Contract, the Promissory Note and the Purchase and Sale Agreement. You sign everything electronically. No printer, no notary run, no driving anywhere.

We also set up automatic monthly payments so you don't have to remember to send anything.

The whole process usually takes about two weeks. Most of that time is county paperwork, not us.

If you want to know exactly what you're signing before you ever put money down, you can read the full contract template on our website. I'd actually encourage you to. Read every page. If something doesn't make sense, ask me, or have an attorney look at it. I explained the different kinds of deeds and contracts in plain English in this post if you want the background.

Step three is using your land

Your first monthly payment is due in 30 days. Once that first payment is in, you can start using the land. Go camp on it, walk it, clear a spot, park the truck and look at the stars.

There are two things to know here.

• Run your building plans by us first. If you want to put up a structure, set a septic system or bring in a home, just give us a heads up before you start.
• Full time living starts once the balance is paid. You can use and enjoy the land while you're paying, but living there full time waits until it's paid off.

Step four is the warranty deed

While you're making payments, the deed stays with us. When you make your final payment, we issue a Warranty Deed and record it with the county in your name. That's the deed type that gives the buyer the most protection.

If you're paying cash instead, it's even simpler. $249 reserves the lot, and the balance is due within 14 days by bank transfer or through a title company. On a cash sale the deed is recorded as soon as the balance is in.

The money back guarantee

I want people to feel good about what they bought. So every sale comes with a money back guarantee.

On an owner financed sale, you have 60 days after closing. On a paid in full sale, you have 4 days. If you're not satisfied, call us. As long as the loan is in good standing, we'll swap you to a parcel you like better, or refund your note payments and take back the deed.

A few honest tips before you buy on terms

Owner financing makes land a lot easier to get into. It's still a real commitment, so here's what I'd tell a friend.

• Do the math on the whole thing. Multiply the monthly payment by the number of months, then add the down payment and the doc fee. Compare that to the cash price so you know what the convenience of terms costs you.
• Pick a payment you can make on a bad month. Not just a good one.
• Read the contract. It spells out what happens if a payment is late or missed. Know that going in.
• Do your due diligence anyway. Check the county records, look at the map, ask questions. I wrote about how to do that in How to Make Sure a Land Deal Is Legit.

What this looks like on a real lot

Take our 5.7 acres on John Conoly Rd near Van Horn in West Texas. It's flat, on the plateau, no zoning and no HOA. The terms are $10,750 cash, or $149 down plus the $249 doc fee, then $172 a month for 84 months. You can see the full listing and the free property map here.

If you've got questions about how any of this works, call or text me at (817) 631-1858. I'm happy to walk you through it.

Jarod

Heads up. I'm not a lawyer, a Realtor, a title agent or a financial advisor. I'm just a guy who buys and sells a lot of land. This post is general information from my own experience, not legal, tax or financial advice. Every state, county and deal is different, so talk to a qualified professional about your situation before you make a decision.