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Estimated reading time: 4 minutes
I know what you’re thinking: “It’s too good to be true.” In this video, Becky from Becky’s Homestead explains how people with very little money can get themselves a small plot of land.
To be clear, she doesn’t mean literally no money. But as you’ll see, owning a piece of land in the countryside is not a pipe dream. In fact, it is very doable.
You can watch the full video below, but if you prefer text, I typed up all six steps. Scroll down to read them.
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Step 1: Gather Local Newspapers
You’re going to have to do more than a simple Google search for “land for sale.” You need to gather local newspapers from counties all over the state you want to live in. I recommend going on a trip for a few days to check out the area and gather papers as you go. Oftentimes, there are great deals in these papers that get overlooked.
Step 2: Search The Newspapers
Get out a Sharpie and search for land for sale by owner because if you try to go through a bank, they’ll probably turn you down for having little money or bad credit. Remember, the property you get doesn’t have to be that large.
Several years ago, my parents purchased 60 acres of land, but it ended up being way more land than they needed. Most of the garden and livestock was on just a few acres, and the rest of the land just sat there unused. What a waste! As Becky says, “Two to three acres is plenty of land for a homestead.”
Step 3: Call The Owners
First, ask them straight up how much they want for the down payment. It’s best to be friendly and honest, but direct. If the down payment is too high, you might be able to talk them down a little.
Second, ask what they want for the interest rate. Shoot for 8 – 12%. Without a lot of money or good credit, you’re unlikely to get anything for lower than that.
Step 4: Investigate The Property
Get the full legal address of the property, including the county it’s in. Once you have that, find the county’s website to find the property appraiser’s office, specifically the zoning department. (You should be able to do this online, but if not, you’ll have to go to the brick and mortar office.) Then you need to do two things:
- Find out if the property is zoned “residential/agricultural” or just “agricultural.” It needs to have the word “agricultural” or you won’t be allowed to have a homestead on the property. Other than dogs and cats, most animals aren’t allowed in strictly residential areas.
- Find out if the property is in the “hundred years flood zone.” You don’t want to live in a flood zone, not just because it might flood, but because it’s probably a very damp and wet piece of property which is not good for animals. You need high and dry land if you want your animals to be happy and healthy.
Step 5: Visit The Property
Call the owner first to make arrangements, then drive to the property and check it out. You want to walk around, have a good look at everything, and make sure it’s a suitable place for a homestead. Here are three things in particular that you should look:
- A Well – You can always add a well yourself, but you’ll save time and money if there’s already one there.
- A Septic System – Again, you could put this in yourself, but having one already there would be very convenient.
- Flat Land – It’s hard to use land that isn’t flat, and as a homesteader, you want to use as many square feet as possible.
Step 6: Find a Title Company
For a fee, a title company will research the seller to make sure they’re the actual owner of the property, and they’ll make sure there are no liens on the property. This could potentially save you a lot of legal trouble.
That’s it. Sign the contract and you are an official landowner!
Check out the full video on Youtube to read the comments and ask Becky any questions you might have.
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- How to Find the Perfect Piece of Land for Your Homestead
- How Much Land Does It Take To Be Self-Sufficient?
FAQs
Seller Financing is a fruitful way of investing in real estate when an investor is unable to secure funds through loans but wants to buy land with no money. Here, the investor and the seller come to a mutual agreement regarding the payment terms, interest rate, consequences of default, repayment timeline, etc.
How can I buy a house if I don't make enough money? ›
State Or Local Assistance
Some state or local housing agencies may offer down payment assistance as grants or forgivable loans. You should also look into your state's mortgage credit certificate program, which gives lower-income homeowners a tax credit for interest paid on their mortgage.
Is land a poor investment? ›
Buying raw land can be a risky investment because it may not generate any income and may not generate a capital gain when the property is sold.
How to make land pay for itself? ›
How to Make Land Pay for Itself
- Maximizing Productivity of Land. ...
- Generating Income from Crops and Livestock. ...
- Investing in Sustainable Farming Practices. ...
- Exploring Other Business Opportunities on the Farm. ...
- Taking Out a Loan For Farm Land Purchase. ...
- Securing Loans For Buying Existing Farmlands.
To buy a lot or piece of vacant land in Tennessee, you will need to get a land loan, otherwise known as a lot loan. Land loans are like mortgages for land in that they are used to finance the purchase of vacant land.
How do people have enough money to buy a house? ›
The average person can afford a house by choosing an affordable area to live, saving up a strong down payment, and paying off all their debt to make sure they have plenty of margin in their budget.
What is considered house poor? ›
Key Takeaways. A house poor person is anyone whose housing expenses account for an exorbitant percentage of their monthly budget. Individuals in this situation are short of cash for discretionary items and tend to have trouble meeting other financial obligations, such as vehicle payments.
Why do people buy land? ›
What are the main benefits of buying land in California? Key benefits include appreciation potential, high demand, limited supply, location, development opportunities, tourism growth, and population growth. California offers one of the most lucrative yet supply-constrained real estate markets.
How to invest in land without money? ›
Some examples of how to buy land with no money are:
- Scrutinize Listings.
- Residential and Commercial Land Investments.
- Row Crop Land and Land for Livestock.
- Small Farm Investment Opportunities.
- Real Estate Crowdfunding.
- Hard Money Lenders.
- Equity Partnerships.
- Seller Financing.
Land Ownership Ensures Secure Retirement
Landowners can rent or lease out the property to make money after retirement. However, the benefits of owning land go beyond that. A land parcel can become an income-generating asset over time. On top of that, land requires little to no maintenance and keeps appreciating.
Land hacking (the process by which you generate multiple income sources from one parcel of land) can be an incredible real estate investment strategy and can even help you replace the income from your full-time job.
Can land make you money? ›
Your Land's Resources Generate Profit
Land is more than a testament to ownership; it's a testament to opportunity. Its potential to generate sustainable and often passive income resonates profoundly in our quest for financial growth and stability.
How do I start flipping land? ›
How Does Land Flipping Work?
- Step 1: Purchase Cheap Land. The most important step in land flipping is to find affordable land. ...
- Step 2: Make the Property Shine. The next step is to get your hands dirty or, at least, get creative. ...
- Step 3: Offer Easy Financing. ...
- Step 4: Make the Sale. ...
- Step 5: Enjoy the Profits.
Arizona is the cheapest state to buy land with a median price of $4,164 per acre. New Mexico is the second cheapest state to buy land with a median price of $6,000 per acre.
How much is an acre in TN? ›
Statewide, an average acre of Tennessee land is worth $14,400, but it's all about location. The average sales amount for a 251,911 square foot lot in one of Unicoi County's prime locations is $59,408, according to FindAnyAnswer.com. Tennessee's $14,400 per acre average cost compares to $12,100 in the lower 48 states.
Can I homestead in Tennessee? ›
Generally, Tennessee property owners may designate up to $5,000 worth of their property as a homestead, or $7,500 if it involves more than one debtor.
Can I buy a house if I make 25K a year? ›
Yes, you can buy a house if you make 25K a year. But purchasing a home on any income takes planning. You first need to understand how banks assess whether or not they'll give you a mortgage loan, what down payment assistance is available, and other factors that influence your ability to buy a house.
Can you buy a house making 30k a year? ›
Can I buy a house if I make thirty thousand dollars a year? It's entirely possible. Here's how lenders look at you as a prospective borrower. The most important component of your loan application is your debt to income ratio (DTI).
How much house can I afford if I make $70,000 a year? ›
One rule of thumb is that the cost of your home should not exceed three times your income. On a salary of $70k, that would be $210,000. This is only one way to estimate your budget, however, and it assumes that you don't have a lot of other debts.
How much do you need to make to afford a 400k mortgage? ›
What income is required for a 400k mortgage? To afford a $400,000 house, borrowers need $55,600 in cash to put 10 percent down. With a 30-year mortgage, your monthly income should be at least $8200 and your monthly payments on existing debt should not exceed $981. (This is an estimated example.)
