Blog

How Should I Pay? Financing vs. Cash: Both Good Options!

TL;DR Financing allows you to start using property immediately with little upfront cost while paying upfront with cash allows you to pay the lowest possible price

We like to provide our customers with choices –– there is no one-size-fits-all approach to land buying. 

As such, for nearly every property we sell –– which we own outright, by the way –– we offer two forms of pricing:

  1. Financing: Minimize upfront expense and spread the property cost across a longer period of time, usually ~36-60 months
  1. Cash: Secure the maximum discounts and lowest possible wholesale price by paying upfront

In both cases, you’ll have immediate access to start using the property. In the case of financing, yes, that’s even though you haven’t fully paid for the property yet!

However, there are some differences between the two purchasing types:

FINANCING

One of the primary advantages of purchasing land with financing is that you can start using the property immediately without needing to provide the full cash outlay upfront –– once you’ve made the down payment and set up automatic monthly payments, you’re free to start using the property as you please!

Maybe your family could use a weekend getaway off the grid to celebrate?

When choosing financing, there are a few things to consider:

  1. Financing pricing will often be more expensive than paying cash upfront –– if your goal is to maximize discounts, paying upfront in cash may be the better option for you. 
  1. While you can start using the property immediately, you won’t officially own the property and receive the deed until your final payment has been made –– in the meantime, a land contract signed by both parties will state those terms. (You’ll receive your new deed to the property shortly after the final payment has been made –– typically ~4-6 weeks after that payment is received, depending on the speed of the county.)
  1. The full monthly payment or “cost” may look slightly different than what’s shown on the website. That’s because we also collect any taxes and dues (if applicable) owed to the county or property owner’s associations (POA). These would be taxes and dues (if applicable) that you would owe and pay to the county and POA directly if you owned the property outright –– we only serve as the intermediary through the duration of our land contract.

(Here’s an example of what we mean: a property’s financing price reads as $199 down and $119/month for 36 months –– that’s only the price of the property. Let’s assume this property’s annual taxes are $350/year and annual POA dues are $100/year. That would add $450/year to that property’s cost, or $37.50/month. Your monthly payment would then become the property purchase amount ($119/month) plus the taxes and dues amount ($37.50/month), for a total monthly payment of $156.50/month. Please note, however, the $37.50/month in taxes and dues are paid directly to the county and POA –– we don’t profit whatsoever from those payments!)

CASH

Cash is much more straight-forward, there’s really not much to explain! 

Put simply: if you’d prefer to maximize your discounts and pay the lowest price possible, then our upfront cash option is the right choice for you! You’ll also receive the deed shortly after paying for the property –– typically ~4-6 weeks after payment is received, depending on the speed of the county.

For additional resources, please browse our blog and FAQ, and don’t hesitate to contact us with any questions!

As always, your vacant land adventures start here.

How We Price Our Property So Cheap

“Why is your property so cheap?”

“What’s the catch?”

“Are you a real [business, person, seller, etc.]?”

Too clickbait-y of a title and intro? Weird way to indirectly praise ourselves? Hey, you might not be wrong! But it is also true that these are among the questions that we most commonly receive. And we’re proud that we’re able to deliver this kind of value to our buyers!

But we totally get it. You wouldn’t be the first to be skeptical, and I’m sure you won’t be the last.

For starters, buying vacant land entirely online can be nerve-racking. For many, it’s the first time they’ve ever done so.

We’re trying to change this and make land-buying as quick and simple as if you were buying toilet paper on Amazon (skip the $120 Prime fees, though). But it’s not easy! We’ve tried to help by publishing our own internal due diligence process — this is the same process we use to buy dozens of properties from owners we’ve never met, entirely sight unseen. Your needs and comfort level may vary, but feel free to utilize or tweak for yourself in whichever way you see fit.

Second, you may have found us by sorting for the least expensive property in the area you’re seeking property. In many cases, you’ll find that not only are we the cheapest, but our pricing is well below other comparable properties for sale in that area.

Naturally, that leads you to wonder, “Why?”

There are several reasons for this which we’ve listed below, but the short answer is: we’ve designed our entire business to deliver the best prices! It’s our main sales pitch or value we provide as a business for our customers.

Here are some of the ways that we’re driving this:

  • We market and buy in bulk, reviewing thousands of potential acquisitions in the process —> Allows us to pick the very best properties and negotiate the best prices
  • We buy directly from property owners —> No middleman or broker fees
  • We close our transactions in-house —> No expensive title company fees and lengthy close processes
  • We’re a small, family-owned business; not real estate agents or brokers —> No real estate commissions or minimum sales prices needed
  • We price to sell quickly —> We could increase our prices and wait months for the perfect buyer to come around, but we’d rather sell quickly and re-invest in more property selection for our customers
  • We use technology, tools and process to operate as lean and efficiently as possible —> No army of salespeople commissions, massive marketing budgets, office waterfront views or extravagant Christmas parties to pay for

Ultimately, every one of our acquisitions come down to this: if we can’t sell a property to be among the most competitively priced property in the area, we don’t buy it. Simple as that.

Add in a heavy helping of transaction savings and a dash of operational efficiency, and the low-price recipe becomes much easier to see. We’re able to then pass these savings on to our customers through the most competitive prices on the market.

Of course, many of our properties are in rural areas. While we conduct thorough due diligence when we acquire property, it’s impossible to account for everything. We include everything that we know about each property on our website — including hiring locals to take photos and pull maps in many cases — but we’ve never visited the properties ourselves and surely there are things we don’t know.

But we like to think that’s all baked into the price! Part of what allows you to purchase at the best prices on the market is this small element of surprise. Maybe the property you purchase from us had something unique about it that we never knew about — we’re happy when our buyers are getting a killer deal. It’s a win-win!

If you still have any questions, please visit our FAQ or don’t hesitate to contact us!

As always, your vacant land adventures start here.

Due Diligence: The 5 Step Process That Works For Us When Buying Land

Buying vacant land doesn’t have to be hard. You don’t have to be a seasoned real estate professional to do so. At least that’s what we’re trying to accomplish here at Land Brotherz. 

Look around the industry and you might quickly think otherwise, though! 

At least that’s what they want you to think.

And by “they,” I mean all those involved in the industry whose paycheck depends on your purchasing or selling activity — and how they can get involved in that activity.

Real estate agents, brokers, title agents, attorneys, contractors and so on … whether they’d like to admit it, they want you to need them! They need you to need them — their paychecks and commissions depend on it!

Now, let’s be fair. They can certainly be helpful. Many are quite experienced and good at their jobs. And if the deal is large and complex enough, then someone (e.g., title insurance) might be worth consulting. Maybe that number is a $5,000 sales price. Maybe it’s $10,000. Your mileage and means may vary. Do what works for you!

In our years of operating and closing dozens of transactions, we’ve closed nearly all of our transactions in-house. We’re not agents or brokers. We’re just everyday business owners who have put in the time to research and educate ourselves on the process. To help provide you with the confidence to conduct your own due diligence, we’ve included our 5-step process below!

To be clear, this is the due diligence process that we follow and what has worked for us. We can’t claim that it’s perfect — we’re always improving — but with each transaction, we’ve learned something new and incorporated that learning into our process. 

Again, this is just what has worked for us — a combination of online research and good old-fashioned phone calls (e.g., to local authorities like the County Assessor, Tax Collector, Planning-Zoning Departments, etc.). 

It’s not the most fun part of land buying — wouldn’t you rather be camping or building your vacation cabin on your new lot already? — but it’s an important process to ensure you know what you’re buying. Your process can (and probably will) differ. We hope that our process is helpful as a high-level framework to you but do what you’re comfortable with!

(But first, some fun legal stuff! The information provided on this website and in this blog post does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. The content on this posting is provided “as-is;” no representations are made that the content is error-free. Readers should contact their attorney to obtain advice with respect to any particular legal matter.)

DUE DILIGENCE PROCESS

  1. Call County Assessor to confirm ownership information (e.g., name, acreage)
    1. Who’s on the deed?
    2. What is the acreage on the property?
    3. Is there a property ownership association (POA)? Any past due amount?
    4. Any liens?
  2. Check online or call the County Tax Collector to check taxes and confirm back tax amount
    1. What is the past due amount?
    2. What are the annual taxes?
    3. When is the next installment due?
    4. Is there a property ownership association (POA)? Any past due amount?
    5. Any liens?
  3. Check online for property maps
    1. Does the property have drive-up access?
  4. Check online and confirm “comps” support deal price
  5. Depending on what you’d like to do, contact the County Planning-Zoning Department to ensure that you can do it — here are some example questions:
    1. Does this parcel have legal access?
    2. What is the zoning of this property?
    3. What uses are allowed?
    4. Is the site buildable?
    5. What types of buildings are allowed? Modular homes? Site-built only?
    6. Is camping allowed? If so, for how long? Other limitations?
    7. Are animals allowed? If so, what types and limitations?
    8. What are the allowable agricultural uses?

If everything checks out and you like what you see, move forward with the transaction!

Get Immediate Access To View Our Properties

Submit the form below to get immediate access and get on our deals alert email list: