Lending rate for owner financing land

4 Replies

Originally posted by @Darren Eady :

Most lenders won't lend on land, especially private lenders.  

How long do they need the money?  What is your exit strategy if they don't make payments?

 3 years, they are buying my house on another parcel, but want all the land (2 parcels).  If they default I get land back or I could I attach it to the original property?

@Kelly Hall   in these instances rates are low  as there is not a lot of buyers for the adjacent property if there were you would just sell it for cash and call it a day.. give them a good rate so they buy it.. is what I would do

I just recently bought a property in Sacramento CA  and it had an extra lot.. I sold the extra lot ( after getting cashed out for my flip and making a nice profit) for a nice price and I think 6 % interest.