Land purchase question
#7655546
08/22/22 02:57 PM
08/22/22 02:57 PM
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Joined: Dec 2012
Posts: 2,124 NC - Here there and everywhere
coondagger2
OP
"Brat"
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OP
"Brat"
Joined: Dec 2012
Posts: 2,124
NC - Here there and everywhere
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For the financial experts on here.
I am looking at 45 acres that is too good of a deal to pass up. I can afford to buy the land with a land loan, but cannot afford all of the land and the price of building our house.
What I can afford is to buy half of the 45 acres and build our home. But the current owner will not sell half, he will only sell the whole 45.
I have the money available to put down 25% of the purchase price of the 45 acres.
I have talked to our local farm credit and they said if the land is sold then the sold value up to the appraisal number will be paid directly back to the loan. You do not keep the money that you get for selling half of it. I would like to use the sell price of the half to build the home.
Is there another way to finance the land loan without the revenue from selling half of the land going directly back into the loan?
Thanks!
Gotta live up to the nickname...
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Re: Land purchase question
[Re: coondagger2]
#7655551
08/22/22 03:07 PM
08/22/22 03:07 PM
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Joined: Dec 2006
Posts: 21,537 Sandhills Nebraska
Gary Benson
trapper
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trapper
Joined: Dec 2006
Posts: 21,537
Sandhills Nebraska
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I wonder how developers get away with selling lots off a chunk of land. Maybe if they pay cash its allowable.
Life ain't supposed to be easy.
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Re: Land purchase question
[Re: coondagger2]
#7655568
08/22/22 03:26 PM
08/22/22 03:26 PM
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Joined: Jan 2007
Posts: 3,960 Northern Nevada
Bob
trapper
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trapper
Joined: Jan 2007
Posts: 3,960
Northern Nevada
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If it were me I would not do both at the same time. Either build the house or buy the land. If your current living situation is stable and you don’t mind staying where you’re at awhile longer, AND you buy the land at less than market value, I would probably lean toward buy the land, sell half for enough to pay off the remaining balance, and then later build the house. The only way to finance, sell half and keep the cash from the sale is with an unsecured loan OR using something you already own as collateral to secure a loan. Otherwise if you sell part of the land it will go directly to the bank to pay off your loan. The bank always gets paid first, if there’s any left over it gets sent to you.
"I have two guns, one for each of ya."
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Re: Land purchase question
[Re: hippie]
#7655586
08/22/22 03:49 PM
08/22/22 03:49 PM
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Joined: Dec 2012
Posts: 2,124 NC - Here there and everywhere
coondagger2
OP
"Brat"
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OP
"Brat"
Joined: Dec 2012
Posts: 2,124
NC - Here there and everywhere
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Buy if a good deal and what you want, worry about the house later.
(wish I had someone tell me this 40 years ago, I let the land I still think of slip away.) This is what I don't want to happen. I do not want to miss out on this property because I know I won't find anything else for a deal like that. It is a beautiful piece of property with hardwoods and a large field that drops down on the river bottom. There is an overall elevation change of 150 feet from the front to the back of the property which is a lot for central NC. You can see for miles it seems like up there on the hill. It would make a heck of a place to build a house
Gotta live up to the nickname...
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Re: Land purchase question
[Re: Foxpaw]
#7655591
08/22/22 03:55 PM
08/22/22 03:55 PM
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Joined: Dec 2012
Posts: 2,124 NC - Here there and everywhere
coondagger2
OP
"Brat"
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OP
"Brat"
Joined: Dec 2012
Posts: 2,124
NC - Here there and everywhere
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Get the guy to cut it in half. Get a mortgage on one half and pay him. Maybe he would sell the other on contract and spread the payments out a few years and get his taxes down. Since he wouldn't want to let you pay it off because of taxes if you was to sell it then You would have to sell your contract to the new guy which if they wanted to build they would have to get him to release a building spot. Could have him sell it to you in two parcels and get two mortgages and if you sold one you could keep the profit from it after paying off balance. He will not split, it will be sold as once piece. I will have to do the split if I want to sell half later
Gotta live up to the nickname...
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Re: Land purchase question
[Re: hippie]
#7655624
08/22/22 04:38 PM
08/22/22 04:38 PM
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Joined: Mar 2018
Posts: 469 SW MISSOURI
Rockfarmer
trapper
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trapper
Joined: Mar 2018
Posts: 469
SW MISSOURI
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Buy! Live in a camper if needed, you probably won't get a second chance. agree 100%
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Re: Land purchase question
[Re: coondagger2]
#7655625
08/22/22 04:40 PM
08/22/22 04:40 PM
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Joined: Dec 2006
Posts: 5,639 Williamsport, Pa.
jk
trapper
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trapper
Joined: Dec 2006
Posts: 5,639
Williamsport, Pa.
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I am with Hippie, buy it now!!!! Maybe timber off some of the trees for a payment or what ever but buy it and figure out the next step later. But it it will probably never get any cheaper.....jk
Free people are not equal. Equal people are not free. What's supposed to be ain't always is. Hopper Hunter
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Re: Land purchase question
[Re: coondagger2]
#7655637
08/22/22 04:55 PM
08/22/22 04:55 PM
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Joined: Dec 2006
Posts: 17,548 Rodney,Ohio
SNIPERBBB
trapper
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trapper
Joined: Dec 2006
Posts: 17,548
Rodney,Ohio
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What's the hunting lease rates in the area like? Small property it might not be enough for a house but leasing, pe for selling hunts preferably, might give you some breathing room.
Last edited by SNIPERB🦝; 08/22/22 04:56 PM.
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Re: Land purchase question
[Re: hippie]
#7655640
08/22/22 04:58 PM
08/22/22 04:58 PM
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Joined: Jan 2008
Posts: 9,153 Alaska and Washington State
waggler
trapper
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trapper
Joined: Jan 2008
Posts: 9,153
Alaska and Washington State
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Buy if a good deal and what you want, worry about the house later.
(wish I had someone tell me this 40 years ago, I let the land I still think of slip away.) This
"My life is better than your vacation"
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