Why We Love Buying Minnesota Land in Cash

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Why We Love Buying Minnesota Land in Cash

Bart Waldon

Minnesota, nicknamed the "Land of 10,000 Lakes," is known for its natural beauty and abundance of lakefront property. Stretching over 86,000 square miles from the rugged Canadian border woods to the rolling plains along Iowa, this Midwestern state offers diverse landscapes. For land investors and second home buyers, paying cash to purchase Minnesota property has many distinct advantages that enable scooping up deals on fabulous locales.

Thriving Job Market Attracting New Residents

A driving force behind real estate demand across Minnesota remains the state's robust and rapidly growing economy. The Minneapolis-St. Paul metropolitan area serves as financial hub of the Upper Midwest, with nineteen Fortune 500 firms headquartered locally. Minnesota's $365.5 billion economy ranks as the 17th largest state GDP nationwide.

Major Minnesota corporations lead vital industries, fueling economic expansion. Retail giants Target, Best Buy, and supermarket leader Cargill all run global operations from their Minnesota HQs. Medical technology firm Medtronic develops cutting-edge health solutions, a key growth sector. Insurer UnitedHealth Group serves over 70 million plan members worldwide.

Strong blue chip anchors like these twin city firms attract skilled labor from across the country. Minnesota's average unemployment rate trends nearly a full percentage point below the U.S. overall. Twin Cities unemployment is just 3.1% as of October 2022. These employment opportunities in turn drive demand for housing in the greater Minneapolis metro as newcomers flock to the area.

Gorgeous Lakes in Abundance Attract Home Buyers

Beyond low joblessness, Minnesota offers a picturesque landscape dotted with thousands of glistening lakes. As part of the northern glaciated plains, land across central and northern Minnesota undulates with forests, wetlands, and plentiful lakes left by Ice Age glaciers. These natural wonders attract outdoors enthusiasts, retirees seeking natural splendor, and families looking for lakefront living.

The famed "Lake Wobegon Trail" runs through Kandiyohi, Stearns, Todd, Otter Tail and Wadena counties in west central Minnesota. Hundreds of smaller lakes connect to form popular chains including Pelican Lake, Maple Lake and Lake Mary. Park Rapids inHubbard County brands itself as the "Heart of the Lakes" with over 400 lakes within 25 miles of town. Minnesota's lake abundance and beauty make it a modern promised land for those able to purchase property on their shorelines.

Midwestern hospitality combines with the state's natural blessings to boost Minnesota's appeal. Reasonable cost of living also entices residents despite cold snowy winters. These fundamentals make the state a magnet for interstate migration. From 2010 to 2020, over 200,000 net new residents relocated to Minnesota drawn by job prospects and high quality of life. This influx of new residents underpins housing demand.

Strong Property Markets With Room to Grow

While real estate sales slowed in 2022 along with higher mortgage rates and inflation, Minnesota home prices remain just 6.3% off their midyear peak. Home values are still up over 10% from last year statewide. There remains a substantial gap between housing supply and demand after a decade of underbuilding across the Land of 10,000 Lakes.

These positive fundamentals make Minnesota property attractive for real estate investors and second home purchasers alike. Strong rents and sustained housing shortages point to future home price appreciation, especially in the booming Twin Cities region.

New construction continues across the state as well but builds are having trouble keeping up. In the Minneapolis/St. Paul area, multipurpose permits for new housing units are set to decline for the first time in over a decade in 2023. Tight housing markets plus low rental vacancies show room for further real estate price growth remains.

For buyers seeking land outside metro centers, many counties still offer relative affordability. Median home values range from just $157k in Faribault County south of the Twin Cities up to $415k in the tony suburban Lake Minnetonka area west of Minneapolis. Savvy investors or vacation home buyers can use cash to tap value outside of core urban areas.

Scooping Deals With Speedy Cash Closing

Using cash to purchase real estate across Minnesota provides leverage negotiating deals and closing sales faster - essential advantages when competing offers abound. Cash buyers can act decisively on a home or land purchase without being constrained by mortgage qualification hurdles. This flexibility is invaluable for vacations homes shoppers trying to nail down sales during peak summer months.

For income-oriented real estate investors, cash is king when aiming to expand rental property portfolios or land holdings quickly. Land Boss makes dozens of cash property purchases annually across Minnesota, often buying land parcels directly from private owners in win-win transactions. Cash allows the firm's acquisition experts to buy land at favorable discounts to market value. Customers browsing Land Boss Minnesota land listings benefit from these savings.

Key Benefits of Paying Cash for Minnesota Property

Beyond nimble negotiating and faster closing capability, Minnesota real estate investors or second homeowners can realize major financial benefits buying property with cash compared to financing purchases:

No Mortgage Constraints - Cash buyers sidestep limits on purchase price or property types imposed by real estate loans. Unique land parcels or expensive lake homes are fair game without financing hurdles.

Stronger Deal Negotiation Leverage - Unconditional cash real estate offers provide greater bargaining credibility over those contingent upon securing traditional financing. Preapproved cash buyers willing to close quickly gain an upper hand negotiating sales terms.

Lower Overall Closing Costs - Purchases without financing skip hefty lender fees for securing a mortgage, saving thousands in origination charges. Only title insurance, legal fees and transfer taxes apply for cash buyers.

Quicker Closing Timelines - Typical home loans require 45-60+ days to fund, delaying deal completion. Preapproved cash buyers can close deals in as little as 30 days or less when timing matters most.

Enhanced Privacy - Cash purchasers skip exhaustive proof of income and stringent asset verification checks required for real estate loans. Discretion appeals to celebrities, foreign buyers and investors trying to avoid attention.

Stronger Long Term Returns - While financing does provide leverage, cash buyers benefit from full equity ownership from day one. That means accumulating 100% of any property value appreciation over time rather than just gains on a mortgage down payment.

Tax Advantages - Real estate investors can claim property depreciation deductions over time on capital expenditures, management fees, and other costs. These valuable paper losses offset tax bills.

The merits of buying land or lakeside homes with cash instead of financing in Minnesota range from added transactional ease to superior privacy and long run returns. For these reasons, cash remains the preferred transaction medium for investors and second home purchasers across the Land of 10,000 Lakes. The ability to act swiftly secures deals on beloved Minnesota property.

Final Thoughts

With its thriving economy and abundance of natural beauty, Minnesota offers no shortage of appealing land and real estate opportunities. Demand is ever-present from newcomers and second home buyers lured by good jobs and stunning scenery. In popular lake country markets, having cash available provides huge advantages to purchase property decisively. Cash buyers can negotiate firmly, act quickly on deals and realize lower closing costs and enhanced privacy. They also benefit from full ownership rather than financing part of deals. For these compelling reasons, there remains an enduring allure surrounding buying stunning Minnesota land or lake homes with cash payment. Swift decisive investors reap the fruits of acquiring coveted locales across the magnificent Land of 10,000 Lakes.

Frequently Asked Questions (FAQs)

What kind of land parcels are available for cash purchase in Minnesota?

Opportunities abound across Minnesota for buyers seeking land. From scenic hunting acreage in the north woods to vacant residential building lots closer to Twin Cities suburbs, diverse parcels can be scooped up with cash. Farmland and ranch acreage also trade hands regularly.

What discounts below market value are typical for Minnesota land cash deals?

Discounts vary based on urgency of the seller and parcel attributes, but 10-25% below full asking prices is common. For distressed sales or rural tracts lacking road access, heavier discounts of 30% or more are possible for unwavering cash buyers.

How long does closing on a cash land purchase take in Minnesota?

Streamlined cash closings can finalize sales in as little as 30 days, though 45-60 days is more common allowing proper title conveyance. Closings require passing title insurance review, drawing up deeds to transfer, and selecting a closing agent if no attorney is involved.

What fees apply when buying Minnesota land with cash?

Closing fees include title searches, title insurance, attorney/closing agent costs, recording charges to file deed transfers and depending on county - transfer taxes. Total closing costs often range 1-5% of the total purchase price. Some of these expenses can be negotiable when paying cash.

What risks do cash land buyers face in Minnesota?

Paying all-cash does not release buyers from due diligence like confirming zoning, allowable uses, property access rights and surveying parcel boundaries. Hidden title defects, undisclosed easements/right-of-ways, boundary disputes with neighbors, or uncontrolled cleanup costs on polluted sites also pose risks if not properly vetted. Careful due diligence mitigates these hazards.

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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