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Thread: Buying land ?????

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    Default Buying land ?????

    How did you aquire your land?? Buy with cash? Private deal? Bank loan?? Did you have someone carry the loan for you? my bank says they will finance 60%. Does this sound right???

    Thanx/joseph

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    Member matjpow's Avatar
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    It depends on what kind of land it is. Residential land, the bank will typically finance 80%. With remote recreational land, it depends on the remoteness and many other factors (60% seems fair for recreational land). You have to understand that the bank is taking more risk on recreational land. It can be hard to re-sell if you default on the loan. I do see owner finance from time to time but I would be cautious of that. If you buy state land (remote or not) the state will finance 90%. Of course if you are not a resident, the I think your only option with state land is over-the-counter sales. It would be best to talk with a real estate agent. They would be able to steer you in the right direction for financing options.
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  3. #3

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    Quote Originally Posted by NebraskaJoe View Post
    How did you aquire your land?? Buy with cash? Private deal? Bank loan?? Did you have someone carry the loan for you? my bank says they will finance 60%. Does this sound right???

    Thanx/joseph
    Cash is best, owner finance is common with remote land. Many banks will not finance remote land at all unless they have some other collateral as well.

    If your bank will finance the land at all count yourself lucky.

    60% of what? Usually it's 60% of the appraised value or sales price, whichever is less. Often the appraised value is less than the sales price so then you could be down to 50%.
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    Member RainGull's Avatar
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    Cash......
    Science has a rich history of proving itself wrong.

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    Member Vince's Avatar
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    good luck... I mean it...cash or cash or owner carry on raw land unless you are planning to have income property and can show recovery within a few years...
    "If you are on a continuous search to be offended, you will always find what you are looking for; even when it isn't there."

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  6. #6

    Default Buying land

    When the "owner carries" how does that usually work?? Do you go thru a title company?? Do you have an attorney draw up paperwork?? Just trying to see where I stand in the marketplace and what I really can afford.

    Thanx/joseph

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    Member Vince's Avatar
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    Quote Originally Posted by NebraskaJoe View Post
    When the "owner carries" how does that usually work?? Do you go thru a title company?? Do you have an attorney draw up paperwork?? Just trying to see where I stand in the marketplace and what I really can afford.

    Thanx/joseph
    any title co or your Realtor can do the owner carry papers. all you both have to agree on is the terms and the rest of the legal jargon can be done by the pro's.

    we have done it twice, once buying once selling. both times split closings and set up escrows for payments to be made to... and that is the easiest way..

    for 50 bucks a year the seller can have the bank collect and deposit into his personal account.

    the Benny to owner carry is this.. as long as all the disclosures are there and correct.. you do not have to meet the banks engineer requirements prior to occupancy when a residence is involved.

    you may typically have a slightly higher interest rate perhaps not.. but most often a shorter mortgage period.. with possible balloons scheduled around dividend time. even those can be written to accommodate dividend fluctuations..

    if you use a Realtor now discuss owner carry with them they have access to all the docs and ideas to do it legal...as will any land or title co.
    "If you are on a continuous search to be offended, you will always find what you are looking for; even when it isn't there."

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    Member AKsoldier's Avatar
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    I've been checking into this too. My bank will only finance recreational property up to ten acres. Often owners will finance, but they generally want a sizeable percentage down.

    The other 299,300,000 people can have it.

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    Moderator Paul H's Avatar
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    Just something to consider, I'd say if you can't afford to buy the land outright for cash, then you likely don't have the financial means to do anything with the land once you have it. The cost of raw land is small in comparison to what it costs to access the land and to develop it.

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    Member greythorn3's Avatar
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    ya loans are for people that cant afford things.
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  11. #11

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    The Kenai Peninsula Borough is going to dump 27 or 28 tracts 2+ acres to 3+ acres in Hope, Alaska 5% down, super low interest, principal reduction for building cabin, having water well drilled, etc. They are looking for baby makers to keep the Hope School open. Do NOT PM me, contact the KPB 1-800-478-4441 or 262-4441

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    Quote Originally Posted by AGL4now View Post
    The Kenai Peninsula Borough is going to dump 27 or 28 tracts 2+ acres to 3+ acres in Hope, Alaska 5% down, super low interest, principal reduction for building cabin, having water well drilled, etc. They are looking for baby makers to keep the Hope School open. Do NOT PM me, contact the KPB 1-800-478-4441 or 262-4441
    http://www.borough.kenai.ak.us/LandManagement/Hope.htm

    http://www.borough.kenai.ak.us/LandM...ort_8-2009.pdf

    Hope this helps a family out.

  13. #13

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    Banks really don't like lending on raw, rural/remote land. Owner financing is a good way to go but be aware of some dangers: if the seller still owes money on the land and defaults it could put you in a bad situation. So use caution with owner financing. Going with the state DNR would work well if you find something good.

    I disagree with if you can't pay cash you can't afford to do anything with it; a person with the skills/time/etc., could put a cabin up for next to nothing on good forested land, but the price of land can be a major obstacle.

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    Default Copper River area

    Quote Originally Posted by NebraskaJoe View Post
    How did you aquire your land?? Buy with cash? Private deal? Bank loan?? Did you have someone carry the loan for you? my bank says they will finance 60%. Does this sound right???

    Thanx/joseph

    Hi Joe:

    I purchased an old homestead in Gukona Ak back in the 90 with cash. This was an old spud farm that was over grown and nasty but it had a road, power on property and a messy cabin. I spent the first summer clearing scrub and hauling crap off the land. Last winter I finished the new house which incorperated the original cabin and is 3100 sq/ft log composite home. We moved in last summer and it is a great place!

    I found this land by looking finding abandon or over run cabin sites. There are many in the Copper river valley and many can be purchased for a lot less than you think. It is always important to stay close to a road (unless you want remote) as the cost of building a raod is very high. Power is another major cost at about $2,000 a power pole from the existing power supply. Try to stay with cash as the seller will deal when you have the money up front and you can drive a better deal.

    If I can help drop me a line and the process is fun. We all like to build our Alaska dream home or cabin!

    Walt
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