Investment Types
There are various investment types that we offer our clients. All investment types are based on the Land industry and are meant to give you an alternate and simpler means of investment.
Land Notes
Buy Notes for Owner Financed Property. Regular payments with a good interest rate assure you a steady passive income.
- Debt instrument with regular mortgage payments
- 12-15% interest
- Fixed interest rate
- Term length can be 5-15 years or even shorter
A look at Land Notes
A lot of people who are Land investors create a debt instrument called a 'Land Note'. Here's a quick overview of how a Land Note works:
- Ashley wants to sell a piece of land for $50,000. She is willing to finance the sale of this property. This means she will sell the property to a buyer and loan them the money to buy it. In essence Ashley is selling the land and being a bank to her buyer
- Bob would like to buy this piece of land from Ashley but Bob has only $1o,000 cash.
- Ashley is willing to sell the land to Bob on terms, with $10,000 as a down payment. Bob agrees pay back the remaining $40,000 to Ashley as monthly payments with a 12% interest rate.
- Once the sale is complete, Ashley now holds a debt instrument called a 'Land Note' or Mortgage whereby she gets regular monthly payments from Bob at 12% interest.
- You can now purchase this Note and receive the monthly payments with 12% interest - hence receiving a higher Return on your Investment than if you were to invest it in a savings account.
Transactional Funding
Transactional Funding allows for a land transaction to happen. The lending period is typically under a week and the returns are 4% for just the short term the funds are needed.
Transactional funding allows for back to back land transactions to take place.
There are 2 parts of a back to back transaction.
A-B: Where B buys the property from seller A.
B-C: Where B sells the property to buyer C.
To give transactional funding is to provide funding for the A-B transaction to happen. Transactional funding is for 3-4 days and carries 4% interest.
Joint Ventures
Partner with an active land investor who needs the capital for adding value to a piece of property.
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