Why We Love Buying Mississippi Land in Cash

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Why We Love Buying Mississippi Land in Cash
By

Bart Waldon

Mississippi is located in the southern region of the United States, bordered by Tennessee, Alabama, the Gulf of Mexico, Arkansas and Louisiana. Known as the Magnolia State, it has rich history and culture, stunning landscapes ranging from rugged hills to lush farmlands, forests and wetlands. The state offers plentiful recreational opportunities from camping, fishing to golfing and more. It also has no state income tax, making it an affordable place to live and do business.

When it comes to buying land in Mississippi, there are many good reasons why more and more people prefer and even love to purchase it with cash. Let's explore those key benefits in detail:

Reasons Why Cash Buyers Love Purchasing Mississippi Land

Quicker and Simpler Process

The main attraction of buying Mississippi land with cash outright is that it dramatically simplifies and speeds up what can often be a complex, dragged out process - especially with traditional financing options like mortgages.

For starters, making a cash offer means buyers don't have to go through lengthy paperwork and approval with banks and financing institutions. There's no need to have perfect credit or income history. Qualification and approval happens in days rather than weeks or months.

Cash buyers also have more flexibility to close deals on their own quicker timeline instead of jumping through hoops for banks, appraisers etc. They can purchase land parcels more spontaneously without worrying about secured loans falling through over tiny technicalities.

Negotiating Leverage

Cash offers provide negotiating power. Sellers often prefer cash in hand instead of contingent deals dependent on financing, appraisals etc. This allows buyers willing to pay with cash make more competitive offers the seller is likely to accept.

Having financing pre-approved gives similar leverage to compete with cash offers. But fully waiving contingencies with a cash purchase usually makes the offer much more enticing for sellers who want confidence the deal will close smoothly without delays from banks or appraisals down valuing the property.

Grab Great Deals

Paying the full amount in cash allows land buyers capitalize on motivated sellers who want to offload their land quick. Whether they are facing financial issues, inheriting unwanted property or moving abroad, people wanting an urgent sale are much more likely to accept offers from cash buyers.

Making prompt cash offers on distressed land can lead buyers acquiring acreage well below market value - sometimes 50% or less. Even small 5 to 10 acre rural plots can then be purchased under $10,000 if the timing is right.

For these financially strained or impatient sellers, cash deals provide certainty, eliminating exasperating delays. This allows cash buyers swoop in, negotiate excellent value purchases and flip the land again profitably when more favorable market conditions arrive.

Avoid Debt and Interest

Funding a land purchase entirely with cash means owning it outright with 100% equity from the outset. The property is free and clear of any debt, liens or obligations the moment the deal closes.

This avoids tying up capital long-term to pay off interest fees and principal on loans to banks or other finance providers. Cash buyers sidestep regularly making mortgage repayments plus the extra costs from appraisals, surveys, title insurance and loan origination fees.

Without interest and fees eroding affordability, more cash flow is freed up to reinvest into additional land acquisitions. Portfolios of land assets grow rapidly when buyers have sufficient capital reserves to keep making full cash purchases.

Hold Long-Term with Minimal Costs

Owning land free and clear enables buyers comfortably retain parcels indefinitely for long-term holds, speculation or as legacy assets to gift future generations without pressure from debt burdens.

Holding costs are also vastly reduced when there are no mortgages or loans to service. Minimal annual outgoings for undeveloped land typically only include low property taxes plus basic liability insurance for unused vacant plots.

With no urgent timeframe to sell before loan maturity dates, owners can await ideal market conditions to eventually build on or sell for maximum future return on investment. Patient cash buyers are rewarded for playing the long game.

Key Considerations for Mississippi Land Buyers

While purchasing real estate like Mississippi land for all cash clearly has many advantages, some key considerations should be kept in mind to ensure it aligns within budget and expectations:

Have Sufficient Capital Reserves

Few individual buyers possess the full funds to complete such large acquisitions single-handedly. Working with established professional companies like Land Boss with the resources and expertise to buy land at volume with cash allows leveraging their capabilities through joint ventures or partnerships.

Seek Professional Assistance

The land business entails countless variables from zoning and usage laws to access rights, surveys, title checks, liens, disclosures plus state and county specific procedures. Mistakes can easily happen without adequate professional guidance - leading to substantial unexpected costs down the line.

Conduct Thorough Due Diligence

While cash buyers may capitalize on distressed below-market deals quickly, sufficient due diligence must still be undertaken to avoid inheriting hidden issues or contamination etc. that become future liabilities. Reputable companies like Land Boss execute detailed protocols protecting buyer interests.

Have Patience with Listing/Reselling

Vacant plots inherently face limited demand and often require 1-2 years exposure on the open market before selling at reasonable value. Holding costs remain minimal for cash buyers but having patience and realistic expectations is vital.

Why Sell Land For Cash?

Now we've covered reasons cash buyers pursue Mississippi land - let's flip perspectives to examine motivations landowners have for accepting cash offers despite receiving lower valuations:

Quick Closing Turns Liabilities to Liquidity

Empty unwanted parcels cost money long-term in taxes, insurance etc. while yielding zero income. They become frustrating liabilities. Receiving a fair cash offer today provides more financial benefit than shouldering ongoing ownership costs hoping for higher future sales that may never materialize.

Avoid Hassles of Traditional Sales

Attempting to sell land independently demands substantial investments of time, effort and money on legalities plus marketing to attract purchasers. Despite exhaustive attempts, deals often stall due to buyer financing falling through. Cash sales via reputable land companies relieve those headaches so sellers move on sooner.

Ideal for Difficult Land

Complex inheritance situations with multiple owners, family disputes or distressed motivations like divorces and bankruptcies benefit from swift cash sales instead of attempting problematic open market listings. Once cash is secured, distribution and disbursement logistics can be resolved separately.

Retire Risk

Land ownership carries risk exposure from trespassers getting injured to environmental liability. Removing such unpredictable dangers off the table through a completed cash sale brings great relief - especially for aging landowners seeking to simplify estate planning.

Final Thoughts

Purchasing Mississippi land outright with cash simplifies and accelerates ownership while providing negotiating leverage for buyers to capitalize on below-market deals from motivated sellers. Avoiding debt obligations also minimizes recurring costs during long-term holds.

Meanwhile distressed, impatient or tax-burdened landowners greatly benefit from receiving no-hassle cash offers for difficult-to-sell land that becomes unwanted liabilities. Reputable specialty firms like Land Boss represent necessary conduits bringing together cash buyers seeking value deals with owners who have land needing to sell quickly despite lower valuations.

With abundant scenic rural space at affordable rates, Mississippi provides the perfect setting to execute win-win land transactions with cash. Buyers gain fascinating long-term investment assets while sellers effectively liquidate unwanted liabilities. Professional guidance ensures complex legal logistics are covered so that all parties walk away satisfied from deals closing smoothly and rapidly.

Frequently Asked Questions (FAQs)

What types of land tend to be purchased with cash in Mississippi?

In Mississippi, cash buyers often purchase rural vacant land, small acreage hobby farms, timber farms, as well as agricultural and hunting land. These land types may be more likely to be listed below market value by motivated sellers, allowing cash buyers to negotiate good deals.

What is the average price per acre for land in Mississippi?

The average price per acre of land for sale in Mississippi ranges from around $2,500 per acre up to $6,000 per acre depending on the location, soils, timber quality and other factors. There are often opportunities to purchase cheaper acreage around $1,000 per acre from motivated sellers.

Can I buy land in Mississippi if I don’t live there?

Yes, there are no restrictions on buying Mississippi land for out-of-state buyers or investors. You do not need to be a resident to purchase and own property there. Some cash buyers live elsewhere and use local real estate agents or companies like Land Boss to facilitate the transaction.

What are property taxes like in Mississippi?

Mississippi has one of the lowest property tax rates in the country at an average effective rate of just 0.57% of assessed home value. Rural land is assessed differently but taxes remain very affordable compared to other states, making it appealing for cash buyers.

Are there disadvantages to buying land with all cash?

While buying Mississippi land outright in cash has many advantages, the key disadvantage is it requires having sufficient capital on hand to fund the full purchase price without needing financing. This limits options for buyers lacking substantial liquid reserves, meaning seller-assisted financing or partnerships may be alternatives worth exploring.

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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