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Estimated reading time: 4 minutes
I know what you’re thinking: “It’s too good to be true.” In this video, Becky from Becky’s Homestead explains how people with very little money can get themselves a small plot of land.
To be clear, she doesn’t mean literally no money. But as you’ll see, owning a piece of land in the countryside is not a pipe dream. In fact, it is very doable.
You can watch the full video below, but if you prefer text, I typed up all six steps. Scroll down to read them.
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Step 1: Gather Local Newspapers
You’re going to have to do more than a simple Google search for “land for sale.” You need to gather local newspapers from counties all over the state you want to live in. I recommend going on a trip for a few days to check out the area and gather papers as you go. Oftentimes, there are great deals in these papers that get overlooked.
Step 2: Search The Newspapers
Get out a Sharpie and search for land for sale by owner because if you try to go through a bank, they’ll probably turn you down for having little money or bad credit. Remember, the property you get doesn’t have to be that large.
Several years ago, my parents purchased 60 acres of land, but it ended up being way more land than they needed. Most of the garden and livestock was on just a few acres, and the rest of the land just sat there unused. What a waste! As Becky says, “Two to three acres is plenty of land for a homestead.”
Step 3: Call The Owners
First, ask them straight up how much they want for the down payment. It’s best to be friendly and honest, but direct. If the down payment is too high, you might be able to talk them down a little.
Second, ask what they want for the interest rate. Shoot for 8 – 12%. Without a lot of money or good credit, you’re unlikely to get anything for lower than that.
Step 4: Investigate The Property
Get the full legal address of the property, including the county it’s in. Once you have that, find the county’s website to find the property appraiser’s office, specifically the zoning department. (You should be able to do this online, but if not, you’ll have to go to the brick and mortar office.) Then you need to do two things:
- Find out if the property is zoned “residential/agricultural” or just “agricultural.” It needs to have the word “agricultural” or you won’t be allowed to have a homestead on the property. Other than dogs and cats, most animals aren’t allowed in strictly residential areas.
- Find out if the property is in the “hundred years flood zone.” You don’t want to live in a flood zone, not just because it might flood, but because it’s probably a very damp and wet piece of property which is not good for animals. You need high and dry land if you want your animals to be happy and healthy.
Step 5: Visit The Property
Call the owner first to make arrangements, then drive to the property and check it out. You want to walk around, have a good look at everything, and make sure it’s a suitable place for a homestead. Here are three things in particular that you should look:
- A Well – You can always add a well yourself, but you’ll save time and money if there’s already one there.
- A Septic System – Again, you could put this in yourself, but having one already there would be very convenient.
- Flat Land – It’s hard to use land that isn’t flat, and as a homesteader, you want to use as many square feet as possible.
Step 6: Find a Title Company
For a fee, a title company will research the seller to make sure they’re the actual owner of the property, and they’ll make sure there are no liens on the property. This could potentially save you a lot of legal trouble.
That’s it. Sign the contract and you are an official landowner!
Check out the full video on Youtube to read the comments and ask Becky any questions you might have.
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FAQs
Seller Financing is a fruitful way of investing in real estate when an investor is unable to secure funds through loans but wants to buy land with no money.
How do people afford to buy land? ›
There are several options. One is a land loan. However, you may also qualify for seller financing, local lenders, or a home equity loan.
Is land a poor investment? ›
Buying raw land can be a risky investment because it may not generate any income and may not generate a capital gain when the property is sold.
How to flip land with no money? ›
FLIP LAND THROUGH TAX DEFAULTED PROPERTY
Local county governments hold tax defaulted auctions on a regular basis and will have defaulted land parcels, some open land and some in residential neighborhoods. In many instances, these vacant properties will be sold for 10 or 20 cents on the dollar.
How to buy land in California with no money? ›
USDA or VA Loans for Land With No Money Down
Two distinct programs stand out, USDA land loans and VA loans. The United States government grants eligible buyers the opportunity to buy land and build on that land, if they are doing so in a remote area.
How to make land pay for itself? ›
How to Make Land Pay for Itself
- Maximizing Productivity of Land. ...
- Generating Income from Crops and Livestock. ...
- Investing in Sustainable Farming Practices. ...
- Exploring Other Business Opportunities on the Farm. ...
- Taking Out a Loan For Farm Land Purchase. ...
- Securing Loans For Buying Existing Farmlands.
It is important to note that land that can generate income will likely be more expensive than land that can't. As a general rule, the cheapest land in the United States tends to be desert land without utilities. These areas have limited uses, at least soon.
Is it good to own land? ›
Overall, land ownership gives a sense of security and financial stability that allows owners to use land for various purposes. Landowners can grant their land as per the location and the demand for agriculture, residential, commercial, or recreational purposes.
Is it smart to buy land? ›
Is buying land a good investment? In most cases, the answer is yes - as long as you're properly prepared. Investing in undeveloped land, however, isn't quite as simple as putting money down on a duplex. To ensure you're making an informed decision, we've outlined our top seven tips to know before purchasing land.
Is real estate a poor investment? ›
Real estate has traditionally been considered to be a sound investment and savvy investors can enjoy a passive income, excellent returns, tax advantages, diversification, and the opportunity to build wealth. However, real estate investing can be risky, just like other types of investments.
While often associated with schemes, many times land flipping, like house flipping, involves legitimate investment in undesirable land priced below market value and improving it, later selling it at market prices for a profit.
What is dirt flipping? ›
little “Dirt” Flipping Business in the St Louis area. I work with my two teenage boys, and together we find. inexpensive, undeveloped Vacant Land, buy it cheap, and then flip it for cash. It's simple, easy, and doesn't cost that much to get.
What makes property flipping illegal? ›
What is Illegal Property Flipping under California Law? The bottom line is that if fraud is in anyway involved with the “flip” of the property, the conduct is illegal and may be punished as a crime.
Can you buy land in Florida? ›
Yes. See Buy Land from the state under the State Lands' Quick Links for a complete list of properties for bid or sale.
How to buy land in Texas with no money? ›
With a “Land Home Loan Package” your lender wraps the cost of the Land, Home, and Utilities all into one loan with one monthly payment. Many of these loans can be approved with as little as 5% down and some can be approved with 0% down if the land is in a rural area.
Is it easy to buy land in NC? ›
Buying land can be tricky. If you've never done it before, you'll find it's much more complicated than just browsing Google Maps, calling your broker and cutting a check. The final cost is rarely the same as the final list price for the parcel.
How much money should you save before buying land? ›
Start by researching how much land is going for in the area you want to purchase and use a calculator to determine your monthly payment. Depending on the lender, many credit unions and national lenders provide these useful tools online, free of charge. Typically, a land loan requires a 15 to 20 percent down payment.
Why millionaires are buying land? ›
The transfer of wealth from one generation to the next, known as the great wealth transfer, is driving billionaires to invest in land in the United States. This provides a means for them to preserve their wealth for their heirs and secure their financial future.
How do farmers afford their land? ›
Purchasing Land
Beginning farmers have first priority to purchase these properties at the appraised value. To buy the land, you might want to consider Beginning Farmers and Ranchers Loans from FSA such as the Down Payment Loan and farm ownership loans.
How much money do you need to live off the land? ›
The cost of living off the grid can differ depending on various factors. However, Tory Jon, Founder of CamperFAQs and an outdoor expert specializing in camping and off-grid living, said people can expect to pay an average of $500 to $2,000 per month to live off the grid.
