Land Investing Online

Simplified Seller Financing for
Land Investors: The How To Guide

Untitled design (8)

Check out our podcast episode where we discuss how seller financing
could be a great way for land investors to make even more cash!


Seller Financing, also known as Owner Financing, is a real estate agreement in which the seller, or land owner in our case, handles the loan process with the buyer instead of a bank or institution. 

Though not all sellers will be willing—or able—to provide financing to the buyer, it should still be considered as it is a great way to buy a property, while also simplifying the closing process for all involved.


It is recommended that both parties in a seller-finance deal hire a real estate attorney, or a real estate agent to review any contracts as well as the promissory note. Finding someone who is very familiar with seller financing, as well as the area you are buying/selling where there could be potential regulations, could save a lot of headache long-term. 

After the buyer agrees to use seller financing, both parties sign a promissory note.  This note is a written and signed promise to repay an agreed upon sum of money in exchange for financing. A promissory note typically contains all payment terms such as (but not limited to): total amount, interest rate, payment schedule, as well as default consequences. 

These deals are often short-term (5-8 years), with many requiring a balloon payment at the end of the term.

During the designated terms, the seller typically HOLDS the title to the property until the loan is paid in full or refinanced to another lender. This is known as a contract for deed.


  • More flexibility in terms of down-payment.
  • Accelerates the closing process.
  • Provides an alternative in places where it may be difficult to obtain a bank loan.
  • Eliminates appraisal costs, bank fees and inspection requirements (unless buyer states otherwise).


  • Allows owners to sell their property as-is, without having to meet appraisal requirements.
  • Great investment opportunity with better returns than most traditional investments.
  • Allows sellers to hold the title to their property in case the buyer defaults on the loan.
  • Shortens the selling process by minimizing due diligence requirements and eliminating the long lending process.
  • Allows sellers to have the opportunity to sell the promissory note to an investor for an up-front payment.
Untitled design (10)


  • More likely to have higher interest rates compared to banks or financial institutions, due to buyers having fewer assets and risk for liability if the buyer defaults on the loan. 
  • May require borrowers to make a balloon payment at the end of the loan term.
  • Depending on the buyers credit, the seller may not be willing to provide them with financing.


  • Exposes sellers to the risk of non-payment, default and in some cases for-closure.
  • Puts seller on the hook for repairs and other consequences of deferred maintenance if the buyer defaults the loan.
  • Federal law may prevent sellers from offering seller financing, limit balloon payments and require the parties to involve a loan originator.

Seller Financing with Eric Scharaga

Check out our YouTube video below, where we are joined by Eric Scharaga, a notable figure in the land investing world, specifically in the realm of seller financing where he has been mastering the process since 2016.

"I have met a lot of excellent people in the land investing community, and I enjoy it because of the immense opportunity for quick turn around in ANY market."


If you are interested, but still not sure where to start with your own land investing business, come check out our premier land flipping course where you’ll get access to 30+ course training modules, private land investor only Discord channel, state-of-the-art resources, weekly webinars and so much more!