So you’re ready to take action. Fantastic!
Purchasing raw land is extremely easy and can be done as quickly as the bank can move your money!
There are two ways you can purchase a property with MJ Land Sales. All cash, or through owner financing.
CASH PURCHASE
Purchasing raw land outright with cash offers several advantages, but it also comes with its own set of considerations. Here are the steps involved in a cash land purchase:
Pros:
- Immediate Ownership: Paying in cash allows you to take ownership of the land promptly. There's no need to wait for financing approvals or deal with mortgage paperwork.
- Savings on Interest: By avoiding loans, you save on interest payments over time. This can significantly reduce the overall cost of the land.
- Negotiation Power: Cash buyers often have stronger negotiation power. Sellers may be more willing to lower the price when they know the transaction won't be delayed by financing hurdles.
Cons:
- High Upfront Cost: The primary drawback is the substantial upfront expense. Not everyone has the liquidity to pay for land in cash.
- Opportunity Cost: Using cash ties up your funds, potentially limiting other investment opportunities.
- Limited Tax Benefits: Unlike mortgage interest, there are no tax deductions associated with cash land purchases.
Steps for Cash Purchase:
1. Provide Information to Your MJ Land Sales Representative:
- Name(s) for the contract and deed (individual or business)
- Phone number
- Mailing address
- Email address
2. Review the Land Sales Contract:
Ensure accuracy of the deal and understand the terms.
3. Electronically Fill In and Sign the Land Sales Contract:
You will recieve an email from Sign Now that will allow you to digitally sign the contract. This provides a seamless, quick closing that doesn’t require expensive realtors or other 3rd party people. With the Sign Now document, there is no need to set up an account,
If you don’t feel comfortably signing electronically, we can mail the contracts to you for signature. You would wet sign them and mail them back. This process takes much longer, resulting in a delay in your ownership of the land.
4. Make the Payment:
Choose from various options (Credit Cards, ACH, PayPal, Venmo, or wire transfer). If chosing to pay via Credit Card or ACH, MJ Land Sales will send you a payment link to securely complete the transaction.
5. Deed Transfer and Completion:
MJ Land Sales handles the deed, notarization, and submission to the county. We realize it is asking a lot to make a payment prior to the deed being filed with the county. We have the sales contract in place, and we photos or proof of the transfer process every step of the way.
OWNER FINANCING:
Owner financing allows buyers to make payments over time, spreading out the financial burden. Here's how it works:
Pros:
- Flexible Payment Terms: Buyers can negotiate customized payment schedules with the seller.
- Lower Initial Cost: A smaller down payment is required compared to an all-cash purchase.
Cons:
Higher Overall Cost: Interest and financing charges accumulate over the financing period, increasing the total cost.
Risk of Default: If the buyer fails to make payments, the seller can reclaim the land.
Ownership Rights: When financing, ownership remains with the seller until completion of the payments. During this financing period, MJ Land Sales allows use of the land, but will not allow improvements to be made, such as installing a well, septic or building a home. These actions typically require permitting by the county/state, which the owner (MJ Land Sales LLC) would have to submit. Additionally, if these improvements were made prior to completion of the financing terms and the buyer defaults, the land would go back to the seller, along with those improvements. **Please make sure you discuss this with your Sales associate prior to making the purchase!**
Steps for Owner Financing:
1. Provide Information to Your MJ Land Sales Representative:
- Same details as in the cash purchase section.
2. Make the Down Payment:
- Use the provided link for Credit Cards, and ACH payments, or pay via PayPal, Venmo, or wire transfer.
3. Review and Sign Contracts:
- Ensure accuracy of the Land Sales Contract, Sales Contract, and Promissory Note.
4. Set up monthly payments:
- You can set up an auto draft via a secure online link we provide. This ensures you never miss a payment.
5. Deed Transfer and Completion:
- Prior to the last payment, MJ Land Sales will reach out to confirm the Deed information remains accurate.
- Upon final payment, MJ Land Sales will handle Deed creation, getting it Notarized, and filing the appropriate paperwork with the county. Your comfort with this process is of top concern to us. We provide photo or other proof every step along the way to ensure you are comfortable with the process and understand what is happening with YOUR property.
That’s it! 5 easy steps and you are a new landowner! This process can be completed in as little as a just a few days while we get documents notarized and wait for funds to transfer.
Often we are buying this land sight unseen and completely online. We understand how scary and unnerving that can be. We are acutely familiar with the media reports of land scams out there. That’s why we offer to get on the phone to talk to a real person, to video chat if desired so you can put a face to the name, and will maintain a level of communication that ensures you are comfortable with this process. If ever you have any questions or concerns, please ask. We are here to help!