How We Approach Financing with Our Clients
*OUR LAND POST PARTNERS HAVE THEIR OWN FINANCING TERMS. IF YOU SELECT ONE OF THEIR PROPERTIES, PLEASE INQUIRE WITH THEM ON THEIR FINANCING PROCESS.
PROCESS TO BUY PROPERTY WITH GUIDELOT’S OWNER FINANCING PROGRAM:
- Do your research – make sure the property is right for you. We give you all the information we have in the listing for each property, but you may want to know more. Visit the property to get a feel for the area. Call the county planning department to inquire about zoning or land use issues, depending on what you’d like to use the land for. Research utilities, septic, well drilling, permit costs and easements. Order a title report if you’d like to dig deeper.
- Purchase the property. We make it super simple to buy land. You can check out online with a debit or credit card, or pay via a wire transfer or cashiers check. Click ” Payment Options” button and select “xxx Months” Click “Buy Property” Button Then click “View Cart” “Proceed to Checkout”. Next You will be prompted to enter your Name, Address and information about how you want to take title (the names you want on the deed) and where to send the taxes. Next you will enter in your credit card information and make your secure down payment and you will be setup for automatic monthly payments.
- We will create a contract for deed and send that to you. You will then sign and notarize the contract for deed (usually free where you bank).
- Send the notarized contract for deed back to us.
- Once the final payment has been made on the property we will send you the Deed vesting the property to you. We will send the notarized deed to you with recording instructions (you will send it into the county with a check for the recording fee) and that’s it the property will be officially yours.
While the Guidelot does “finance” a majority of the land we sell, we get this question often enough that we thought it important to devote some space to it here on our website.
The process of “financing”, whether it be land or a home or a car involves the owner/seller – in most cases a bank – agreeing to let the buyer pay slowly over time instead of making one large payment at the outset. In these situations, the buyer is paying more for the convenience of extending the payments over a number of years because the seller will typically not be breaking even, or even profiting on the deal until months or years in the future.
We do finance properties in house. We have included some alternatives to our owner financing program. Below is a short list of companies who either provide funding for such purchases or access to funding. This is by no means a comprehensive list, but many of the options provided are ones the managers of Guidelot have either used personally, or have had buyers use to obtain the funding necessary to purchase from us. None of the links below are affiliate links and we are not associated with these companies in any way.
What Is LightStream?: [From their website] We are a national online consumer lending division of SunTrust Bank, the flagship subsidiary of SunTrust Banks Inc., one of the nation’s leading financial services companies. We believe that consumers who have established good credit have earned the right to a simple loan process and excellent rates. LightStream delivers a revolutionary loan experience that allows customers to focus on their purchase, rather than on their financing. With our innovative lending products and proprietary technology, consumers with strong credit profiles can receive highly competitive, fixed rate financing via an easy, fast and virtually paperless loan process. From the convenience and comfort of their computer or mobile device, customers can apply, be approved, sign their loan agreement and receive their funds, as soon as the same day of their application. We will beat any qualifying rate. $100 loan experience guarantee
Why We Like LightStream: Most banks will not finance the purchase of undeveloped land. LightStream, on the other hand, will finance land. You’re in control of the loan process with LightStream. You choose your funding date. You can even have funds deposited into your account as soon as the same day you apply. Get a 0$ Down, no-hassle loan with no fees, no home equity requirements. The unsecured LightStream loan has no fees or prepayment penalties. There are also no appraisals. You can check your rate,(it is typically around 8% for land) then apply from your smart phone, tablet or computer, and get a low rate on a virtually paperless loan, from $5,000 to $100,000. Lightstream will give you a lower interest rate with $0 down, which is better than we can do. We get a cash payment which is what we prefer. Everyone wins.
Have We Used Lightstream? We have never used Lightstream but it comes highly recommended from other land investors.
Drawbacks: As with any type of loan or financing that you apply for, a LightStream loan comes with a built in interest rate. Meaning, if you apply for a $10,000 loan to purchase a $10,000 property and elect to pay off the balance slowly over the course of a 5 year term, you will end up paying more in the long run than if you had simply paid off the purchase immediately or made larger payments each month throughout the duration of the loan. As noted, however, this is common with most any type of ‘financing’ and Lightstream offers very favorable interest rates.
Who Is LightStream Best Suited For? Anyone buying land for personal reasons, such as to relocate or downsize to a more “off-grid” lifestyle. Many of our clients are looking to do such things and in budgeting out how best to build their own rainwater catchment or septic system, or construction of a container home they come to realize that they don’t quite have the funds necessary to finance their ambition. A LightStream Loan can help those people realize their dream.
Learn More: You can visit LightStream’s website HERE.
Your Bank
Usually banks do not lend on land. However you can usually get a personal loan from your bank to use as you wish see fit. If you wish to purchase land than that is how you see fit to use the money. Usually your bank will give you a personal loan and the terms will be more favorable than we can do in house.