kansasblue
(1000+ posts)
Send PM |
Profile |
Ignore
|
Sun May-14-06 12:35 PM
Original message |
Land investments. need some help |
|
I'm thinking of buying some land. It would could to about $80,000. No buildings on it.
What should I expect an normal down payment to be? What interest rate do you think I could get?
What's the normal lentgh of land loans?
Thanks
|
scruffy
(66 posts)
Send PM |
Profile |
Ignore
|
Sun May-14-06 07:56 PM
Response to Original message |
1. A lot of it depends on what you're doing with the land |
|
You've probably already found out - banks don't care too much for raw land . . . and it seems the larger the parcel, the less they like it. Which means that your down payment might need to be higher than if you were buying a house . . plus the loan terms may be shorter and/or the interest rate higher. It definitely helps if you are planning to build something on it.
When we bought land a few years ago, I think we ended up putting 25% down and making a special arrangement with a local bank for a one-year note . . . but we were planning to build.
Your best place for a loan may very well be a local bank in the town where you're purchasing the land. You want a bank where the loan will stay in its portfolio and they won't be selling it to another lender.
|
trof
(1000+ posts)
Send PM |
Profile |
Ignore
|
Mon Oct-09-06 11:22 AM
Response to Original message |
2. You may be able to get the seller to hold the note. |
|
Set up a land purchse contract with them. So much down, so much a month for a set period of years. Many times sellers don't want ALL the income in a single year due to income tax issues.
|
DU
AdBot (1000+ posts) |
Tue May 07th 2024, 07:39 PM
Response to Original message |