Will Rogers said: "Buy land. They ain’t making any more of the stuff.”
Land investors agree with Mr. Rogers and fortunes have been made through wise investment in land.
That’s the exciting part.
The problem is that it takes time for land investments to pay off and while you are sitting there with that land, it probably isn’t making you any money.
This is a problem for lenders. They just don’t like anything that doesn’t produce cash flow, and equally important, would take time to sell if they end up owning it.
Consequently, getting a land loan from most lenders just isn’t possible, and the ones who will loan on land only want to loan about 50% of the value or less.
So, for example, if you want to buy a piece of land for say $800,000 you will need $400,000 down payment.
Ouch!
There are exceptions, as in everything, so your best bet for getting a land loan is to use a knowledgable mortgage broker in your state who has experience in arranging land loans.
We would be happy to answer your questions about land loans and if you are in California we could even give you a quote. Just use our handy contact form and write "land loan" in the comments section.
