When I list a piece of land, I typically get bombarded with a bunch of good questions. A lot of people are first time land buyers or just don’t understand how it can be so easy. They think there must be some sort of strings attached, however I try to remove ALL barriers for the customer. So, what exactly will you be paying? Simple, exactly what I list! The only other fee that I charge is property tax on top of the monthly payment. For instance, if a county charges $50 per year for taxes on a piece of land, I will add a $4 or $5 extra payment on top of each month’s payment. So, if I’m listing a piece of land for $200 and the taxes are approximately $50 per year, you can expect to be paying $205 per month. That’s it!
On my owner financing, there are no credit checks involved. I am not an institution and any loan is secured through my company on a legally binding contract. If you don’t pay me, I will take the land back like the bank taking back a house or a car.
I charge a 7% interest rate on all my owner financing deals. This is INCLUDED in the monthly payment meaning the principal is less than the total financed amount. Let’s take a look at the amortization table below:
As you can see, the loan term is 7 years, or 84 months at 7% interest. The “Total Cost” of the loan is $21,000 while the “Principal” is $16,564.32. This is because the 7% interest is included in the $250 per month payment. This is the exact spreadsheet I use to calculate all the loans for my deals. Obviously, the numbers continue on well past 18 on to 84 but are cut off in this illustration. This is the exact same calculation my online loan system uses, so any extra payment is added to the principal accordingly. The faster it’s paid off, the closer it will be to the principal amount instead of the total cost.
I know there are a lot of people out there selling land and charging $200-$500 doc prep fees just to change a couple of fields around on a deed template. Title companies will charge $750+ just to close a deal and prepare paperwork. This is my way of no strings attached land deals and full transparency. Everything I list is what you get! I don’t need to charge processing fees, credit card fees, closing fees, doc prep fees or any of that crap. I want to sell you land quickly, fairly, and transparently. I hope this helps when trying to make the decision to buy land from Jaz Land over someone else!