Land notes
Land that is still being paid for.
An investor buys the note and receives the monthly payments, a yield secured by the land. The land buyer keeps paying as they do now. The seller who originated the financing lists the note, takes the cash, and can do it again.
What this is
A marketplace for the note. Three parties, kept apart.
- Seller
- Owns the land and financed the sale.
- Land buyer
- Is paying the note, and will own the land when it is paid off.
- Investor
- Buys the remaining payments.
Why it exists
Yield for the investor. Cash back to the originator.
Investor
The monthly payments, secured by the land.
Originator
List the note, take the cash, and finance the next buyer.
How it works
Three steps.
01
The land is financed.
The seller finances the sale. The land buyer pays each month.
02
The note is listed.
The seller lists it for a cash injection, then can do it again.
03
The payments are sold.
An investor buys what is left. The land buyer keeps paying the same way.
