LandDealMaker.com
  You have land.
  We have cash.
  Let’s make a deal.”
 
  Types of Deals

If you are looking to get cash for your land, there are many different types of deals that we can consider. What makes sense depends on your specific needs - whether it's getting cash as fast as possible, or getting the highest possible price, or having the ability to get your property back in the future.

Sometimes putting a deal together involves mixing several elements together. When you fill out our questionnaire to tell us about your specific property, we consider all the information you provide in order to put together an offer that is most likely to suit your needs. This page is here as a reference to some of the things we might propose. The more information you have, the easier it is for us to work together.

Note: not all of these types of deals are available in all locations. Numerous federal, state, and local laws and regulations may restrict what kinds of transactions may take place. This page is for general information only. You should not assume that any deal we may propose will correspond neatly to one of these options.


Straight Sale

A straight sale is the simplest type of transaction to understand. We pay you a lump sum of cash, and you sign a deed to the property, making us the new owners.


Installment Sale

Suppose you don't need cash right away but would rather get payments over time. To sellers looking to build a stream of income, an installment sale might be the best bet. You sell the property to us and sign a deed. In exchange, you receive payments for specified period of time at a specified interest rate. Payments include both principal and interest, and are allowed to defer some of the capital gains taxes that might be due if the deal were structured as a straight sale. The effective yield you earn on an installment sale is higher than you would earn in a typical bank account, so this can be a smart choice for a seller without immediate cash needs. Also, as buyers, we may be willing to pay a higher price for an installment sale than a cash sale in some cases.


Selling a Purchase Option

Suppose you have a price in mind that you want to get for your property, but can't find anyone willing to pay that price. If you're willing to wait, but want to generate some income in the meantime, selling a purchase option might be a good strategy. The price that you require is called a strike price, and the amount of cash you receive upfront is called the premium. During the term of the option, the option buyer has the right, but not the obligation, to buy the property from you at the strike price, and you may not sell the property to anyone else until the option expires. If the option buyer decides to buy the property, you got the price you wanted. If not, you earned some income in the meantime. Of course, while the option is in force you still own the property. You can enjoy it, but still have to pay taxes and any upkeep. The premium you receive upfront is usually of a similar size to an earnest money deposit, and the strike price is typically at a higher price than we would make a cash offer for a straight sale.


Buyback Option

If you decide to sell your property, you may want to protect yourself against regret. Suppose later on you want the property back, or it appreciates in value and you regret having sold. Or whatever circumstances that motivated you to sell change. For a small fee, you can purchase a buyback option at the time you sell. This gives you the exclusive right, but not the obligation, to buyback the property at a specified strike price for a specified term. The strike price is typically equal to the sale price plus a modest markup for closing costs and the carrying costs of the property (interest, taxes, etc.).

 
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