Owner Financing on Vacant Land

[Shawn Howse]

I own some vacant land I am considering to sell on owner financing, as finding a buyer for cash has been quite difficult.  The property is to be sold for only $10K, and am asking for a nominal down payment of just $500.  In the unfortunate situation where the buyer stops making payment, the property will need to be foreclosed.  My concern is that the cost to foreclose may end up being more than my net cashflow prior to that time.  I have seen many sellers advertising their property this way online, but I don't understand how it is structured so that getting the property back does not become a financial burden.  

[Dante Pirouz]

You should ask for a sizeable down at least 15-20% so that can cover the cost of having to foreclose. Plus I think evicting from raw land should be easier than a house. You don't have to get keys back and you can just call the police if they squat or are trespassing...I see you are in Michigan...are you selling this with a land contract? If so then you don't give up the deed until the contract is paid so there really wouldn't be a formal eviction other than getting them to not trespass on the parcel.