Beth:
Hi, I’m Beth with TB Properties Buys Land. Today I’m here to answer the question, when you sell your rural vacant land to investor, what are they going to do with your property and… does it matter?
I’d really like to start by saying, that if this is your property and you’re selling it, it’s a hundred percent okay for you to ask what a land investor plans to do with your property. Personally, I believe you have the right to sell it to them or not if you don’t like what they’re doing with it.
Now with that said, I can’t speak for all real estate investors, but I can speak on behalf of TB Properties Buys Land. For us, we don’t like to purchase property that is smaller than 10 acres. On occasion, we’ll buy smaller parcels, but for us, we like the recreational-type land. Some investors might buy a larger property their plan is to timber the property. It means they plan to cut all the timber down, and then they would sell off the timber for some profit and after it is cleared, they might subdivide it and turn it into a subdivision with little mini McMansions. For us, that is not appealing; we value keeping nature intact and as such, we seek out recreational land.
When it comes to answering, “What are you going to do with my land” one of the things that we might do if we buy a larger tract of land is this: for example, a family might not be able to easily afford a 100 acre tract of land, so we might subdivide that down to, say, a couple 40 acre tracts, or maybe some 20 acre tracts, maybe even 10 acre tracts, so that the average everyday American can afford one of those tracts but we’re still keeping it recreational and preserving the land. When it comes to maybe 20 or 40 acres, a family might be able to more easily purchase that sized property and it’s still a great size that they can take their family out there, camp, bring their RV for a long weekend, maybe they can build on it one day and make that their retirement home, so that’s important to us.
Another thing that we might do is if we buy a tract of land, oftentimes we’ll offer an owner finance with it so that people who can’t get affordable financing from the bank, they can do that through us. We try to take land that is off market and put it in the hands of people who are looking for affordable recreational tracts. TB Properties Buys Land makes land affordable for the everyday person. Every investor is probably different, and for you as the seller, if it is important to you to know what’s to be done with your property after you sell, you should be able to ask.
On another note, what might also be important to you is: how is the process going to work?
Number one, is the real estate investor going to pay you through a title company for your safety and security that the deal will go through? Are you going to be paid in cash or do they have to secure a loan, which risks dragging out the sale or risks it not happening at all if their loan is denied? Also, who’s covering all of the closing costs? These may be questions that you might want to ask, as well. How long will it take to close? Are you actually going to buy my property, or are you just going to tie it up in a contract indefinitely until you’re able to sell it? These are questions that might be more important to you, but if what’s going to be done with the property is important to you, as well, you have every right to ask those questions.
If you have questions about selling your rural vacant land, working with an investor like TB Properties Buys Land, we’d love to discuss that with you. Reach out to us across email, phone, or on our website. We look forward to hearing from you. Thanks again.