Why We Love Buying Iowa Land in Cash

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Why We Love Buying Iowa Land in Cash
By

Bart Waldon

Iowa is known as the heartland of America, with rolling plains and fertile farmland spanning the state. Buying land in Iowa has long been desirable for agriculture, development, or even just owning a private retreat. More and more people are choosing to purchase Iowa land with cash payments. There are many benefits driving this trend for both buyers and sellers when transacting land for cash.

Why Buying Iowa Land for Cash Appeals to Both Sellers and Buyers

Benefits for Sellers

Iowa land owners looking to sell may find it takes extensive marketing and negotiations to secure a buyer at full market price. National reports show it takes 1-2 years on average to sell vacant land across the U.S. With cash buyers like Land Boss, sellers can move their land quickly without these hassles.

Get Cash Fast

The #1 reason home and land owners choose to sell their property for cash is simple - cash offers provide funds quickly, which suits different financial needs. For example:

  • Retirees may opt to sell their land to supplement income. Receiving a cash lump sum allows more flexibility in using the funds during retirement.
  • Farmers use land sale profits to reinvest in equipment/supplies for the next harvest season. Cash deals means funds are available when they are most needed for the farm.
  • Families selling inherited property can divide proceeds among heirs and use it to pay expenses related to the estate.
  • Landowners facing financial hardship due to illness, job loss, or other factors can access equity in their land fast through a cash sale.

In all these cases, cash offers eliminate financing contingencies and delays with traditional land sales. Sellers get their asking price paid out in a matter of days versus weeks or months.

Avoid Hassles of Listing Privately

Attempting to sell Iowa land on one's own can prove extremely difficult and time consuming. Owners must market nationally to attract buyers beyond locals, which few individual sellers can accomplish.

Other headaches faced when listing land privately include:

  • Paying for multiple appraisals to determine accurate asking prices.
  • Creating marketing materials like brochures or websites to advertise the property.
  • Fielding calls and emails from potentially unqualified buyers asking questions or making low offers.
  • Managing time consuming property showings, often on short notice.
  • Negotiating sale terms, contracts, contingencies, etc directly with buyers.
  • Navigating complex county and state regulations for property transfers.

For elderly landowners or those without expertise in real estate, this process can be downright impossible. Cash buying companies like Land Boss simplify matters by handling everything start to finish.

Receive Fair Cash Offers

Occasionally, owners feel cash buying companies like us exploit sellers by making low offers. However, there are valid reasons our offers may come in below retail prices.

As mentioned, the reality is vacant land takes an average 1-2 years to sell in the U.S. Few buyers are willing to pay full retail value on rural land with no existing structures or development. And even when buyers make higher offers, they often lack the funding to follow through or add contingencies that hinder completion.

Cash buyers such as Land Boss mitigate risks that individual buyers cannot by purchasing and holding hundreds of vacant land properties across the country. We buy land discounted because we take on that inventory risk instead of the seller. For owners who prioritize convenience, our instant cash offers provide fair value despite being lower than the retail listing price. Sellers save themselves from potentially 12-24 months trying to market and sell the land while paying taxes and other carrying costs.

Of course, retail will generally garner the highest price and works well when owners have time and ability to wait out the sales process. Those needing or wanting to sell quickly will get more value choosing a reputable cash buyer over listing at fire sale prices with an individual buyer.

Why People Love Buying Land in Iowa with Cash

Buyers also reap major benefits from purchasing Iowa land with cash payments. Financing land through banks or other lenders has become increasingly difficult over recent decades. Paying cash circumvents hurdles borrowers face trying to qualify for property loans.

Cash Beats Financing Hassles

Lenders assess numerous criteria when deciding to finance land deals, including:

  • Credit scores - Having low credit diminishes chances for approval and increases interest rates. Typically scores below 680-700 result in denials.
  • Income history - Unstable income from self-employment, contract work, or short work histories can disqualify buyers.
  • Existing debt balances - High debt to income ratios based on car loans, credit cards, student loans, or mortgages may make buyers ineligible.
  • Property type - Most lenders shy away from vacant land loans given higher foreclosure rates. Requirements are also stricter financing raw land versus improved real estate.
  • Down payments - Most real estate loans require 20-25% down. Few buyers have this capital available, stopping deals cold.

These stringent standards lock out many potential buyers from financing land purchases, even with good credit and income. Paying cash overcomes nearly all these obstacles for people across wider financial circumstances.

Cash Speeds Up Ownership

Beyond access, cash deals deliver land to buyers faster so they can begin using the property sooner. Typical land loans require 45-60 days just to process paperwork and underwriting. Final approval requires appraisals, title searches, and other items that take weeks to finalize.

Closing dates also follow longer schedules, taking 30 days or more from contract ratification. That equals months of waiting post-contract just to gain ownership rights through mortgages. Meanwhile, carrying costs like taxes still apply which buyers must pay before taking possession.

With Iowa land cash purchases however, owners can deed over the property within days of striking a deal. This quicker transfer gets buyers on their land rapidly so they can:

  • Start agriculture or livestock activities in sync with seasons/schedules.
  • Build homes without paying for temporary housing expenses.
  • Use recreational land for hunting, camping, ATV riding when desired.

By transacting in cash, both buyers and sellers maximize efficiency in Iowa land deals. Closings happen quickly and conveniently to meet each party's motivation for buying or selling the tract of land.

Common Uses for Land Purchased With Cash in Iowa

Iowa's mix of fertile plains and development corridors provide diverse opportunities land buyers. Here are main reasons people choose to purchase Iowa property using cash along with associated benefits.

Farming & Agriculture

Over 30 million acres in Iowa are dedicated to farming, making agriculture the state's #1 industry. Rich dark soil spans Iowa's rolling plains, perfect for cultivating row crops like corn and soybeans. Pasture lands also support livestock production including beef, pigs, and dairy herds.

Both existing and aspiring farmers buy Iowa farms for:

  • Expanding acreage - Purchase additional acres adjoining currently owned farmland to increase crop yields and profits. Paying cash allows rapidly expanding for the next season.
  • Gaining efficiency - Consolidate multiple smaller farm tracts into larger unified operations to streamline equipment usage and management. Cash deals let buyers capitalize on such opportunities as they arise.
  • Implementing new technology - Insert precision farming techniques like GPS mapping, sensor-based irrigation, automated machinery guided by artificial intelligence. Extra capital from buying land cheaper for cash facilitates modern upgrades.
  • Diversifying crops or livestock - Enables testing and expanding into specialty crops like fruits/vegetables or non-traditional livestock like goat milk, ostriches, honey bees, fish farming. Financial flexibility with cash facilitates innovation.
  • Building generational wealth - Passing paid-off farms to children offers security and stability to Iowa farm families. Cash purchases establish owned equity for leaving legacy assets.

For buyers wanting land specifically tailored to agriculture, paying cash makes acquisition simpler and faster. Owners can rapidly develop raw acreage tailored to theirexact farming visions.

Hunting & Recreation

In a state where over 60% of land is utilized for agriculture, public recreational spaces become few and far between. Yet outdoor activities like hunting, fishing, camping, ATV/dirt biking, and hiking remain favorite Iowa traditions.

Privately held plots for recreation allow enjoying these pastimes free from public land restrictions. Common benefits include:

  • Customize terrain - Clear trails, add camping facilities/blinds optimized around chosen recreation preferences on their schedule.
  • Access prime nature areas - Position property to benefit from aesthetically beautiful spots, wildlife congregations, fishing hot spots unavailable on public lands.
  • Unrestrictive usage policies - Avoid quotas, limited seasons, special permit costs imposed on public state and federal recreation lands.

Given high demand but limited supply, prices for Iowa recreational acreage have increased steadily. Yet for buyers able to pay cash, deals still exist before rising values drive budget-conscious sportsman out of the ownership market entirely. Recreational buyers who leverage cash to purchase property now reap rewards enjoying Iowa’s unspoiled fishing, hunting, and camping into the future.

Residential & Commercial Development

While Iowa may be better known for agriculture, growing communities continue to expand both commercial and residential spaces. Cash buyers regularly purchase vacant Iowa land for:

  • Future subdivisions - Developers planning housing add ons to expanding communities use cash to tie up large acreage tracks before values jump. Installment infrastructure proceeds incrementally using future sale profits.
  • Trailer/manufactured parks - Affordable housing continues growing in popularity given Iowa’s stable manufacturing economy. Investors buy land discounted for cash to eventually install modular home communities.
  • Retail buildings - Local merchant groups pool resources to acquire town outskirts land for constructing future strip malls and box store complexes. Cash affords flexibility to buy land farther ahead of end retail demand.
  • Alternative energy infrastructure - Open Iowa plains provide ideal locations for wind and solar operations. Energy companies transact leftover surrounding acres with cash for future expansion and buffer space.

With thousands relocating to Iowa annually, development demand appears destined to continue. Cash buyers wanting commercial/residential sites to profit from this influx purchase land now before market heating shrinks available inventory.

Iowa Land Provides Stability as Cash Drives Deals

While economic changes may fluctuate land values in surrounding regions, Iowa remains stable thanks to dependable agriculture and population growth. People recognize the state’s solid foundation by seeking its land for farming, recreation, development and more. Yet tight financing conditions and shifting priorities make purchasing property with cash more necessary than ever.

Land Boss provides that cash avenue to buy and sell land across Iowa and beyond. We deliver simple, fast solutions to fit both buyer and seller motivations in land deals. Cash empowers transactions where traditional financing falls short. Contact us to learn more about buying or selling your land for cash quickly, easily, and fairly.

Final Thoughts

The heartland of America creates powerful incentives for buying land as values across Iowa remain stable yet in high demand. Fertile soil, open space, and growing development feed the market for property while cash fuels accessibility for buyers facing compromised financing options. Sellers also see positives in fast cash sales as transaction hurdles dissolve and equity readily unlocks. By leveraging straight cash in a complex market, buyers and sellers can strategically meet needs for securing farmland, recreational spaces, and property investments. Whether transacting quickly or unable to qualify for a mortgage, cash affords Iowa land buyers greater freedom in purchase opportunities on the ideal timetable. For landowners more focused on profiting from equity or avoiding sales obstacles, cash relieves stress and headaches through simple selling processes. Across these scenarios, cash delivers added control to match motivations in navigating Iowa's desirable and dynamic land ownership scene.

Frequently Asked Questions (FAQs)

Why should I consider paying cash for Iowa land? 

Paying cash allows you to close quickly, avoid financing contingencies, access property that doesn't qualify for loans, and negotiate better pricing. Sellers favor cash buyers for faster closings.

What types of land sell well for cash in Iowa? 

Quality farmland, recreational properties, waterfront parcels, future development sites near growing towns, and any discounted or distressed land motivate cash buyers.

What discounts can I expect from the list price when making a cash offer?

Discounts of 10-20% off listing prices are common with cash deals. In distressed sales or rural regions with few buyers, discounts may reach 30% or more in some cases.

How long does it take to close cash deals on Iowa land purchases? 

Cash closings can take place in as little as 5-7 days in Iowa once the buyer and seller agree to terms. Much faster than traditional 30-60 day real estate closing timelines involving financing.

Can companies like Land Boss make cash offers too low to seriously consider? 

Reputable companies will offer fair cash prices reflective of risks and costs avoided by sellers. Waiting 12+ months to potentially secure higher bids bring carrying costs making quick cash reasonable. Trustworthy cash buyers aim for win-wins.

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.

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