My lots near St. George Utah have been on the market for a whopping 4 months now. It sucks to hold when the market is slow. I have been thinking about trying to sell one lot on Ebay with owner financing.
I did a quick search of land in Utah and it’s amazing what people are buying out there. The auctions in the ranges from $5,000 to $10,000 for acres of what looks like desert flatlands are actually getting sold! I map them out and can’t figure why people would buy them other than that they are cheap.
Meanwhile my lot will be over $100,000. I don’t think the chances of me selling it are that great. Someone spending over $100k would certainly do some due diligence before bidding on my lot, unlike the $5k for 40 acre auctions.
My plan is to entice them with the use of owner financing. I was thinking of asking for only $10,000 down and finance the rest at 18% interest with some sort of balloon in 5-7 years.
The downside is that I only get $10,000 now. I would like more, but don’t feel that ebay land buyers would pay a huge down. Maybe I can say something like, “with 20k down, I’ll finance the rest at 15%”. With land, I feel better doing a low down because the buyers will have to try real hard to destroy the land. I should be able to foreclose if I have to and still come out ahead in the event of non-payment.
The upside that I would get over $1500/mo in interest payments for 5-7 years. I could even sell that note to someone else at a discount if I had to.