Land sales are an entirely different ballgame when it comes to real estate. Land buyers and home buyers have different needs and requirements. Although there is plenty of land for sale, Hillsborough, County home buyers are more apt to purchase a property with an existing home. They won’t want to do the legwork required to get the appropriate zoning or to put in the infrastructure for the lot such as sewer lines and water lines. With such an abundance of land for sale, Hillsborough, County, FL, land buyers are looking for a raw piece of property to make their own. With that said, you usually won’t find land buyers by marketing using the same channels as a home buyer. Also, lending requirements are much more stringent for a land sale. The down payment for land financing is usually significantly higher than a traditional loan. The credit requirements are stricter for land financing and the interest rates are much higher than rates for conventional loans. As such, the pool of buyers is shockingly small, and finding a potential buyer can be a challenge. Given that, the process may take awhile and patience and persistence are key. With the right approach, however, you can increase your odds of finding a suitable buyer in the shortest amount of time possible.
Attend Real Estate Auctions
Although most real estate auctions are for existing homes, they are often a magnet for investors. Investors are often cash buyers or at least have the resources to secure appropriate financing for a land deal. While you may not find an investor interested in your property, they may have connections to other investors who may be interested. There are many ways to locate real estate auctions in your area. Contact a local real estate agent to see if they have information on upcoming auctions. A real estate agent can also do a keyword search of the MLS for you. Ask them to search for “bank owned” or “corporate owned” properties which usually means the property is in foreclosure. Banks want to get rid of these properties as quickly as possible to recoup some of their losses. Contact the bank and speak to someone in the REO Department, as they can give you information about upcoming auctions for their properties. Once you list your land for sale, Hillsborough County real estate investor clubs can be an invaluable resource. Many of the clubs keep updated listings of upcoming auctions and events. Not only that, you may find an investor who is interested in your property. Many times, local governments auction off properties in the county where the property is located at what is known as a “Sheriff’s Sale.” Try contacting the county to see if there are any upcoming auctions. You can also find these listings in the local paper or online at the county website. Attend each sale with plenty of business cards and a prospectus on the property. You’ll have better success in attracting a buyer if you present a professional and informative information packet.
Offer Owner Financing
Purchasing vacant land requires a different set of lending requirements. The credit requirements are more stringent, the down payment is much more significant than traditional financing, and there are far fewer lenders willing to finance such as deal. As a result, there are plenty of buyers looking for Hillsborough, County land for sale by owner. You can increase your odds of finding a buyer if you offer owner financing. With this type of arrangement, you take on the role of the bank for the buyer. Instead of getting a mortgage with a lender, the buyer signs a promissory note with you that outlines the terms of the arrangement. The promissory note describes the amount of the loan, the repayment schedule, interest rate and penalties for late payment or default. In turn, the buyer sends the payment to you each month rather than to a bank. Usually, the term for a land deal is three to five years, at the end of which the buyer pay the entire loan balance or obtain the financing to do so. The theory is that three to five years is enough time for a buyer to secure alternate means of funding. By using this arrangement to finance land for sale, Hillsborough, County FL, sellers can protect their investment by collecting a down payment. One of the great things about owner financing is that you can sell the note to an investor at any time. Selling to an investor lets you collect the full balance of the loan without waiting until the end of the loan term. The investor takes over collecting payments, and you are free to move on from the property without any further obligation.
Contact Hard Money Lenders
Often, when financing land for sale, Hillsborough, County buyers use what is known as a “hard money lender” to fund their deals. Hard money lenders are either private individuals or small investment groups that provide non-traditional financing for real estate investors. Their loans come at a premium usually at interest rates double that of a traditional mortgage. Hard money lenders deal with real estate investors every day. Try contacting some of the lenders in your area, as they can connect with a host of interested buyers. The best resource for finding these lenders is at your local real estate investor club. Members are more than happy to share information and will provide you with tons of referrals. You can also do a quick online search to find lenders. Look for companies with a solid reputation for helping investors as they are more likely to have a vast network of potential buyers. Don’t limit yourself to local lenders. There are plenty of investors in other states looking for properties. Create a list of lenders in surrounding states, and approach them as well.
Talk With The Neighbors
If the property is in a residential area, you could speak with the neighbors to see if they might be interested. Often, however, depending on zoning and location for the property, your land might not be a residential property owner. Usually, when listing land for sale, Hillsborough, County, FL, sellers must locate the commercial property owner or land developer for the adjoining property. The benefit to commercial property owners is that the adjacent land gives them room to expand. They may not have thought about expansion, but if you approach them with a solid presentation, you may be able to convince them that it is a good investment. Using this approach works great if the land is already zoned for what they need. The company will see it as an easy choice because they won’t need to do the legwork to get the appropriate zoning. You can also try contacting local land developers. Land developers are companies that take vacant land and put the necessary infrastructure in place for builders. Developers get the proper zoning, obtain permits, put in sewer lines as well as the water and electrical infrastructure. Once the infrastructure is in place, they sell the land to developers to erect houses or commercial buildings.
Review Recent Land Sale Information
As one of the best resources for locating buyers seeking land for sale, Hillsborough, County, FL, public land records has a wealth of information to assist. Search for land sales within the past 6-18 months and make a list of who bought each property. You may find that the same buyer has purchased several properties recently. Start with these buyers, as they are likely more likely to be looking for additional properties. Another way to find recent land sales is through a local real estate agent. An agent can search the MLS for past sales and give you a list of properties. They can also help you find current land listings as well. Contact the listing agent for those properties to see if they might have someone interested in your property.
Locating a suitable buyer for vacant land can be a challenge. Given the stringent lending requirements, your pool of potential buyers is much smaller than that of traditional real estate. Attending real estate auctions, searching real estate listings, and networking with local investors can result in viable leads. Sometimes, even listing your Hillsborough, County land for sale by owner can bring amazing results. By remaining patient and searching the right channels, you can locate just the right buyer for your property.