Hi Seth, and thanks for the quick response! I’ve looked at the steps you’ve outlined, and, other than a few required disclosures when selling a house, the steps seem the same to me. I’m just not willing to pay a third party 2300 bucks to close a cash deal on a 54k property. It’s just not right that I can go pay cash for a 54k car, but somebody else’s hands have to be in the pot when I buy a 54k house for cash! Arghh! I’m going to buy title insurance because the owner is in bankruptcy, but I really don’t see anything else that I can’t do by myself. I’m waiting on a couple of quotes from different title companies, but I’ll likely buy your package and go from there. Even if it doesn’t work out for this deal, I’m sure I’ll be able to use the info on future land only deals!
With a Warranty Deed, the seller is giving the buyer their “Warranty” (i.e. – Guarantee/Promise) that the title to the property is free and clear and the buyer will receive all reasonable rights to the property. This deed should only be used when the buyer knows for a fact that the property's title is clear of any liens and encumbrances. Most educated buyers will strongly prefer this type of deed (and if a lender gets involved – it will be required).
Seth, you are amazing and brilliant. People at work were talking about you. Now I know why they spoke so highly of your straightforward professional, easy to understand posts. I am excited to look into everything you have to offer. We are all grateful for yoor expertise and the time you take to share and help the novice RE folks out here. YOU rock! Thanks! Just had to say this now. More when I finish!
It is unfortunate, but one of the most common phrases we hear from sellers is “I don’t want to do anything to the land, just sell it as is.” At that point we begin the education process, but sometimes to no avail. Some sellers are just determined to leave significant amounts of money on the table due to the lack of “curb appeal” displayed by their property.
With this in mind, I spent several months putting together a full-blown course that explains how this process works from start-to-finish. The course is designed specifically for people working in the land investing business, and it comes with dozens of video tutorials and document templates that give an in-depth explanation of each step along the way.
Bargain hunters: Of course, some buyers may find you even without a buyer’s agent. “If you have a great house, in a sought-after neighborhood, and you’re on a busy road where you’ll get a lot of visibility, then you might do fine working with only the unsigned homebuyers who discover your house on their own,” says Schorr. If you’ve got a charmer with a great kitchen in an affordable price range, they’ll find it online no matter how far off the beaten path you are.
I’ve heard that it’s very hard to sell land/property with a quitclaim deed, and buyers (whether investors or the open market in general) will only want warranty deeds. So without me having to spend $2000 or so doing a quiet title or using Tax Title Services to make the deed fully clean and marketable and insurable, could you go into some depth explaining how to quickly flip/wholesale land parcels that I’m offering and advertising with a quitclaim deed I got from the county? What do I need to know for this, and how do I structure it to make it attractive, and what steps are involved? Is this something that investors/rehabbers are fine with accepting (if the price is attractive?)
When you’re selling a home, you want to give buyers all the details about it, such as a list of all projects you’ve had completed and a list of all updates and maintenance work performed within the last decade. You also want to show off the most desirable areas of the home, such as the kitchen or recently renovated bathrooms. Buyers are looking for details on the community, such as nearby schools, the friendliness of the neighborhood and property tax information.
If you own a piece of land that you’re thinking about selling, you need to know how to sell your land the proper way and at the proper time in order to maximize your ROI. Land is one of the most significant investments that you can make in your lifetime. So, if you are thinking about selling your land, you need to be absolutely sure about your decision.
When the foundation of an agreement has been reached, exchange the names, addresses and phone numbers of the lawyers involved (i.e., your lawyer and the buyer's lawyer). Get the buyer to have his lawyer draft up the details of the purchase and sales agreement (what you negotiated together, independently or through The Offer Maker®) and have them sent to your lawyer's office. Putting this responsibility on the buyer will help gauge the seriousness of the offer.
If you feel that your agent isn't performing to your expectations, engage in an open conversation with them explaining what you feel isn't being done. Refer to the services spelled out in the contract. It's possible that miscommunication is the problem, and tour listing agent should get the opportunity to make it right. If you still don't see results, talk to other brokers at the firm carrying your listing and see if they can meet your needs.
In terms of paying off the mortgage, you’d have to work directly with the lender to make sure they get paid and that they discharge their mortgage. If you’re unsure about how the process works, then honestly – it probably is best to just work with a title company. It may cost a few hundred dollars more – but for a property like what you’re describing, that’s what I would be doing anyway (I use title companies for anything in excess of $10K). They will take all the guesswork out of this process and make it WAY easier to get the job done.
Moreover, even though you’ll not have a lump sum of money to place against another piece of land or some other big-ticket item such as a vehicle or home construction, you will have the guaranteed income to match your payments, or some such new purchases, including the interest. You’ll also get to keep a lot more of the money you’ll receive, because you’ll only pay income taxes in small installments over the years, rather than all at once, which is likely to bump you into a higher tax bracket.
One way you can do this is by using a third party escrow service like SafeFunds.com (I’ve never used them, but I know some who have and I’ve heard it works well). You could also give the cashier’s check to your mobile notary (if you’re using one) and they can deliver it to the seller after they’ve completed their documents. You could also just make a copy of the cashier’s check (to give the seller evidence that you have the money and it’s ready to go), and send this to them along with their docs to complete… and then you could mail it to them AFTER you receive everything from them.
That means, as it always has, that you’re going to have to pay for your advertising just as sellers always have, but take heart in the fact that you don’t have to pay nearly as much for national advertising as you did in the days of paper. Better still, if you put a hit-counter on your web page(s), you’ll be able to keep track of how much traffic you get from each source. That will give you an idea of which ads are most effective.
Comparables for land can be trickier than for home sales in your area. Although the assessor's valuation on your taxes can provide a starting point, consider factors like whether your property has utilities to the property line, views, zoning and any preapproved building plans to determine its worth. Location is always one of the most critical factors. In San Francisco's Pacific Heights area, for example, a buildable cul-de-sac lot of less than 4,000 square feet can sell for more than $9 million.
I've seen a lot of different situations and dealt virtually every type of buyer, seller, lender and property type imaginable. After working through many of the different scenarios that can materialize in the real estate closing process, I have to admit – I understand why most people are intimidated by the idea of closing a real estate transaction themselves. For understandable reasons – there can be a lot of confusion and fear about how to close a real estate deal without the assistance of a professional.
2. Clean Up the Junk: If you didn’t do this when you bought the place, now is the time. Other than buildings of value, get rid of everything that didn’t grow there. This doesn’t have to be a major ordeal. First check out local laws regarding what, if anything, can be burned at your location. Nearly all states have laws against burning old tires and many forbid burning other items such as other rubber products; wire; treated, painted or finished wood; plastics; garbage; heavy oils; asphalt materials; building materials, especially those containing asbestos; paints; and agricultural and household chemicals. Then, if you have anything combustible, and plenty of water and a way to disperse it, go ahead and burn what you can, but make absolutely, positively certain the fire is out before you leave. “Out” in this case means cold to the touch.