How to Close on a Land Deal in Georgia

How to Close on a Land Deal in Georgia

Athens, GA · Member since 2018 · 11 posts · 5 votes

Hey Everyone,

So I have been looking into land investing for a couple months. Land investing seemed like a good start for me because I don't have much money to invest (~$3000). I recently sent out some yellow letters and am waiting for replies but I don't really know what to do if someone accepts one of my offers. There is not a lot of information out there on how to actually close on a land deal. After I due my due diligence and have a deal what do I do? I live in Athens, Georgia (30606) and am sending out letters in Georgia. I believe Georgia is one of the states that require a real estate attorney for all real estate deals. If this is true, does that make Georgia a bad place to try to buy and sell land because of the added cost? I don't want to buy a property for $1000 and spend $1500 in closing costs. Any information on the cheapest way to actually close on a land deal in Georgia would be greatly appreciated.

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  • Woolwich Twp, NJ · Member since 2017 · 41 posts · 19 votes
    8y
    I don’t really have information on the closing process in Georgia, but had a question. What do you plan on doing with the land? Just holding and hoping for appreciation?
  • Athens, GA · Member since 2018 · 11 posts · 5 votes
    8y

    Thanks for the reply Deep,

    I am trying the Seth Williams model of buying tax delinquent land for ~20% market value to immediately resell

  • Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes
    8y

    Georgia is a "lawyer state" for closings. That means that any real state transaction has to be done with a lawyer. The state sets the closing fee at $450 (or whereabouts) but I have seen attorneys add other fees, with some of them, in my view, being redundant charges, like title examination. Those added fees go from 0 to $200 and more.  You may consider also buying title insurance which for an empty lot would be around $150.  The chances of you being charged what the law says will increase if you ask the lawyers office how much will your total bill be BEFORE you commit to doing the closing with them. Like anything else, shopping around pays off

  • Athens, GA · Member since 2018 · 11 posts · 5 votes
    8y

    Thanks for the response Ed Mayo, that is very helpful. Sounds like Georgia would only be good for land investing on larger deals where I could justify paying those prices for a closing attorney.

  • Consultant · Ball Ground, GA · Member since 2015 · 228 posts · 100 votes
    8y

    @Brian Windle Georgia is a lawyer close state as opposed to a Title company closing in other states.   That's not to say that you can't self close.   Best of luck

    Joe

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