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

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.

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