How do I go about owner financing my land?

I want to Owner Finance my 1 acre of land. What would be the best way to do this? Someone told me to maybe go though a bank and they hold the deed and if they default the payments it would be transferred back to me. Someone with good information would be a great help. I don't know anything much about this.

Thanks

Since you are not a professional, I would do a land contract rather than a deed transfer. That means that you do not transfer ownership of the property until the loan is paid off. It will help in the event of a default by the borrower. I would get as large a payment as possible--25% is a good down payment. You will definitely need a lawyer to advise you so don't try to save a few hundred dollars by not using one. Good luck!

You make an agreement with the buyer. He agrees to put a certain amount as down payment. Both of you agree on the terms.....percentage rate of the loan and for how long. Do a note and Deed of Trust. Any escrow office will set up all the paperwork and record the transaction with the county recorder. I would suggest that you pay the extra fee to be notified if the property taxes become delinquent.

In todays market, at least 25% down, 5%-6% interest rate amortized over 10 years and all due and payable if the buyer sells the property. That is a standard type owner carry agreement.

If your like throwing away money have a lawyer do the paper work for you.....He'll charge you $500 to $1000 and then have his secretary print up the same document an escrow officer would use and charge you less than $100. No buyer with any sense would ever buy any real estate on a land contract because of the potential fraud that often accompanies them. It is the non-professional that are the ones that get burned with a land contract.