Seller Financing for Land Deals

[Joe R.]

All -- 

I'm beginning to see more seller financed land listings offered in MLS, within Lee/Charlotte Counties, Florida.

My questions are: 

- What is a preferred structure for investors? Terms?

- What are you using for default clauses? 

- Which title companies will allow these deals to transact? 

Many Thanks in advance for your inputs.  Looking forward to the discussion.  
  

[Jay Hinrichs]

Quote from @Joe R.:

Quote from @Jay Hinrichs:

Quote from @Joe R.:

Quote from @Chris Seveney:

@Joe R.

Are you buying these deals or looking to write seller financed paper ?

 Hi Chris, I'm looking to explore writing seller financed paper.   

so you own the properties then ?? correct ? 

Jay Hinrichs

Yes sir, I do.  

Chris Seveney
Thank you for sharing your insights.  

having started my Career selling lots and land and buying them at tax sale. I have quite a bit of experience at this and even went to Lehigh acres in the 80s to check it out.. Poster child for developed lots but massive amount of vacant ones its quite a history that development of lots on a mass scale.
Anyway for us terms were dictated on whether we were going to sell the notes to cash out or keep them. Also would depend on foreclosure costs and time lines.

WE generally sold our notes after a few months of seasoning. note buyers for land in those days wanted 20% returns at least.. so it became a function of running PV's as to how we would set the terms..

One of the best we came up with was zero interest 30 months.. Rock solid paper and the discount was the same as we were doing 7 year term at 13 or 15% cant recall which one..

if you have enough spread in what U pay for the dirt and can then sell it for its a great way to do this.  Back in our Day 70s 80s .. our normal spread was 4 to 6X of what we paid for it so we could afford a healthy discount and still double our money cash on cash.

I still fund land flippers to this day and really enjoy it.. bought one today and got paid off on one today :)  And in a way if you really know what your doing beats buying beat up houses for many folks.