Buying land in South Carolina

[Isha Watson]

I am a rookie investor looking to purchase land in South Carolina. I have never bought or obtained financing for land and I have a couple of questions. Can I expect interest rates on land financing to be similar to interests rates for house purchases? Additionally, are their different requirements for qualifying for a loan to purchase land? I am completely green so any insight or help would be greatly appreciated.

[Andrew Johnson]

Isha Watson Like Ron T. says, it’s a different ballgame. You also have to think through what you want to do with the land. When I hear “rookie investor” and “land” it’s a potentially scary conversation. There’s no income with that land to help pay that mortgage (30 year or 20 year amortization). Trying to sell a little timber or set up a “deer camp” seldom pays the bills. But if you want to set up some “tiny house vacation home” then it’s probably more “fun” than a strict “investment”. I’m just making up scenarios but I don’t see too many investors out there buying raw land because it’s more likely to be negative cash-flow than anything else.