Cash Land Buyers

In this blog, we will discuss the topic of cash land buyers, who they are, working with them, and their importance.

First a quick definition: A cash land buyer is someone or entity that buys land for cash. Pretty self-explanatory, right?

Cash buyers are essential for real estate markets because they help solve the problem of liquidity amongst other things. Put aside the annoying lowball offers on your land and think about the problem that you face right now: you cannot liquidate your land at market value overnight.

That's right. We are talking months to YEARS in most land markets to sell at market value. This reality creates a major hurdle in asset liquidity.

But why is liquidity so important? Well, as the saying goes, time is money.

Let's say you need $20,000 in cash within the next three weeks in order to keep your house. Your credit is shot so no one wants to loan you money. You also own a vacant parcel of rural land worth $60,000 but the real estate agent you spoke with says that properties like this take 1-2 years to sell at full price.

Would it be a good deal to sell the land to a cash buyer for $20,000?

Absolutely.

In this scenario, you will lose your house - likely your biggest asset - if it takes too long to find a buyer. That means, to some people, time is worth much more than the property itself.

The above scenario might sound unlikely but most people face situations like this at various points and need to liquidate assets fast in order to solve their problems. Just a few of the situations I've encountered as a cash land buyer include:

• Last minute cash needed for life altering medical treatment for family or pet
• Last minute cash to keep a business from going under
• Lash minute cash to pay off a loan
• Last minute cash to jump into a once in a lifetime investment opportunity
• Last minute cash to enjoy life after recent terminal diagnosis
• Last minute cash to help a family member or friend in crisis
• And many more!

Are you starting to see the value cash land buyers add to the economy? Even if you don't know, you might in the future if any of the above situations materialize in your life.

Still, the truth is that the majority of landowners do not need nor will benefit from a cash buyer. Unless, of course, that buyer is buying for cash at full market price.

Selling a piece of land at full market value and for cash is much less common than people think so when it happens it feels incredible.

The reality is that most sales at full market price are done with seller financing. Cash buyers nearly always try to negotiate the price down except in the rare case that your property is located in an absolute booming area.

Odds are, my reader, you too have been a cash buyer for some asset at some point in your life! And odds are also that you asked for a discount when paying cash on anything more than $2,500.

So who are cash land buyers? They are any person, company, or entity that desires to pay cash for land.

That means that it isn't some special group of individuals. It's everyone with enough money and a desire to pay cash for a parcel.

Just as we discussed the advantage of selling for cash (time/liquidity), there is also a benefit to the buyer: price.

For the buyer to give so much of their capital up front, they gain in added value. That is, they gain, let's say at least 30-50% in margin on their purchase in exchange for a rapid lump sum transaction.

That is how our company, Land Boss, can afford to stay in business - after all.

If you have questions about how to sell your land to a company like ours, you can reach out to us on our website. Also, if you want to learn more about becoming a professional cash land buyer, we would be happy to help you along the way.