Do CASH buyers still exist?

Question

So I bought a 5 acre piece of vacant land located at 3960 Straight Line Rd., Freedom, IN 47431. Its my first real estate purchase EVER. Personally, I love the land, and I actually bought it for the purpose of building a house of my own... Until I realized that I managed to purchase the land at $20k+ BELOW value. After learning this info and looking at comps in the area, I've listed the property on Indianapolis Craigslist and Zillow for $25k, which is still below value, but it seems like the only responses that im getting are from people offering $30k if ill take $1000 down and 400-500 month (which isnt necessarily a bad deal, but im looking for cash). I guess the question here would be... Are there better places/ways to market specifically to cash buyers without dealing with agents and their fees??

Account Closed · Answer

Some ideas - sell at public auction - for all cash "as is"- what you see is what you get -

• Contact several real estate auctioneers in your area - get their opinion of value and the cost for advertising to sell it at public auction - you can put a reserve price on it - or really attract attention and offer it at ABSOLUTE auction - 17 percent more people will attend an absolute sale than one at a reserve.
• Note: Auctioneers are realist - they will tell you like it is - because within 3-4 weeks they have to perform - that is sell your property at a price they suggested - or more. Not to pick on agents (I am a broker), but there are times when they will inflate the estimate of value just to get the listing and will request a reduction after a period of time - A really great agent will tell you exactly what he thinks it will sell for - even if it is well below what you expect.
• You could offer it for sale with 100% owner financing (you'll get more interest) - create split notes then offer the notes for sale at a discount -YOU GET THE CASH! Or you could use the created notes as down payments on cash flow rentals. (that's one way to have your way - little creative - but it works once you understand the necessary steps to achieve that transaction.
• On above try to get additional collateral and a co-signer - YOU WANT security - you want to make those notes attractive - esay for a seller or note discounter to accept.
• Build in a balloon payment - contract candy for end note buyer makes the  balloon attractive. 
• Up the interest a little - make a delayed payment for end buyer - suggest a stutter clause -
• Advertise to trade - AD: "Will trade X acres in Smith County for  cash flow real estate - houses -commercial - Call
• On the above you can make the trade and either keep the cash flow real estate or have a contingency that it will be sold at time of settlement for cash. Just another way to get to the cash.
• Talk to builders - you contribute the land - he builds the house and when sold you get paid off - maybe a little more then you expected.

Charles Parrish ---

Matthew Olszak · Answer

Email big-dog agents in the area with a property flyer, and offer 3.5% (its only $875).

I really like Account Closed's ideas, especially a trade...maybe you can get an easier to sell property and flip it for more.

Also, hold out and be patient. Make it clear in your posts that its cash only if that's truly all you'll accept. On craigslist, up your price to 30k, and say "Discount for fast cash buyer!". You discount to 25k and get what you wanted, and the cash buyers will feel like you are really motivated and therefore they can offer 17% under asking.

Mike Knowles · Answer

I live in Indy and grew up in rural Indiana.  Land contracts are common.  I suspect many people want to buy this on contract, park a mobile home on it for 5-6 years, pay it off, then build a house (mostly by themselves).  There may be someone that goes to the bank for a construction loan and takes it from you in one fell swoop, but maybe not.  There's no lake access, it's not really big enough for hunting or farming...it's definitely a nice plot and plenty of people want 5 acres, but not many of those people have $25k in cash and then enough in reserve to build a house.

Adrienne Bryson · Answer

Just a stab in the dark here.  Is it an area where a housing development would work?  Perhaps you could reach out to some developers...?

Mike Cumbie · Answer

Hi @Daniel Ahlbrand,

Since you own it you can use all the same marketing places we use. You can take out Ads in the paper, TV ads/commercials/Signs on the property. Go to auctions and find people when it is over who want a chunk of land. Put signs up at the grocery store etc. You can head to a title company and see what leads they have for you. You would be surprised how helpful town zoning and assessors offices are and then know a ton of people in the business.

Pull up who the heavy hitters are in the tax records and who owns land, give them a call. Granted heavy hitters don't pay retail, but they might just have an interest in what you are selling. If you want to sell to a retail market, an agent is your route. If you want to sell it for less than it is worth there are plenty of routes.

Good Luck!

Ian Walsh · Answer

Cash buyers are everywhere.  They just come out of the woodwork when the price is appealing.

Daniel Ahlbrand · Answer

Thanks for all of the Info folks! Some great thoughts and ideas here.

James Mc Ree · Answer

You probably want to check with your local planning/zoning office.  The theme of the prior posts looks like the creation of a subdivision plan or a multi-tenant property.  The planning/zoning office may have input on engineering and planning work you need to do before you can deliver the property you are selling.  There may be costs involved that could quickly eat your margin before you even get to the task of installing utilities.

Jim.

Daniel Ahlbrand · Answer

Only municipal utility is electric.. There's a well on-site for water and septic would need to be installed.

Justin Fox · Answer

Do you have a local 'For sale' facebook page, post on that.  Good stuff on Facebook goes very very quick.  Post on craigslist any local real estate classifieds website you may have.  Put signs up on the property of course.  Does the property have city sewer/water available?

Do CASH buyers still exist?

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