During the past couple of years I’ve offered 0% financing on my Seller Financing deals to my buyers since I like to keep things simple and bless the buyer. However, I’ve discovered that sometimes simple ends up costing me more when being taken advantage of, or simply being taken for granted on how good they have it.
Anyway, with that said starting January 1st, 2023, anyone utilizing my Seller Financing on their land purchases will be paying a low 4% interest rate, which is still much lower than many other land owners charge through their Seller Financing. I’ve even seen some Investors charge as high as 15% on their land sales. Ouch!
Please note, that anyone already under an Agreement with me that was made prior to January 1st, 2023, will not be affected with this change since once an Agreement is in writing, it cannot be changed unless all parties agree to it. I personally do not feel it is right to change what was already agreed to, since no one likes a switch in the middle of anything.
Nevertheless, I like to be fair but do not like to be taken advantage of or stepped on, just as I’m sure no one else likes that either.
Besides being taxed on my properties that I own over the duration of my buyer’s loans, till the land is paid off and deeded to them, I’ve found I’m not just being penalized on my taxes but also by not charging any interest I am giving the buyer a way to skip due dates by not paying on time, even though there is always a late fee involved. But I also don't like to have to take back a property either.
When a buyer defaults it costs me more in fees to have to take a property back and it can get real ugly. No one likes ugly.
And, then there’s the loan servicing process, closing costs, recordings, notaries, and other fees that all come into play. Although I’ve tried to wrap that into the entire loan amount in the past, it just makes it easier to lend the way it should be done like a business, which I operate. Although, not so simple on my end of things. Just doing things the right way from a business standpoint.
Of course, not everyone is a bad apple so one bad apple should not spoil things for the rest. Although I’m also glad to reward those who pay consistently on time month after month and never a day late, with 10% off the balance owed once a year is coming to an end on their loan. The payoff amount will continue to be reduced 10% each month as long as they continue to pay on or before the due date.
With this implementation, I will also be providing 10% of the Pay Off amount once paid in full, to your favorite charity. This means if you opt in for the Cash Discounted price, then 10% of your full purchase will be donated to your favorite charity. And, that can be Huge!
It pleases me to say that I’ve even been able to donate a substantial amount to Grizzly Flats Community Church to help in their rebuild process after their church was burned to the ground in the Caldor Fire from 2020. It’s a nice feeling to know that you’re helping a good cause as well as helping a buyer get what they want easily through either a Cash Discounted price or through Seller Financing.
If you do not have a favorite charity, this donation will go to Saint Jude’s Hospital.