Selling Your Land In Kentucky
So you want to sell your land in Kentucky? Great! Land is hard to deal with. It can be located in a remote area that buyers are weary of buying in. On the other hand, the land might not be ready for a homestead yet and a buyer will need to get a road built out to the land or even develop the area working with the electric company to get power out to the property. The county might not provide services to the land you’re aiming to sell and it can be challenge finding the right buyer. Who has the money to buy vacant land in Kentucky anyways? How would you sell land in Kentucky? You may think this, but you’ll be glad you met us!
We buy vacant land in Kentucky and we’ve encountered many property that owners that want to get rid of the property. In many cases the land is vacant and run over with vegetation. It’s hard maintaining land that is remote or uninhabitable. Many buy land with good intentions, but they end up just paying taxes on it for years for no reward. We’ve met many land owners that inherited the property by default and got stuck with the tax liens.
It makes sense to own land. It’s one thing that we can’t make more of. It certainly has many uses, but that is all in the eye of the beholder. After all, one man’s trash is another man’s treasure. Getting stuck paying the bills on a loved one’s land is not fun and it’s certainly not something that you should be burdened with. It’s unfair that you should have to pay something that wasn’t your responsibility that fell into your lap without your doing. You have enough on your plate and a plot of land is the last thing you need to spend money on!
If you’re getting letters from the bank or tax office in regards to your land, don’t worry. You’ll certainly want to take action to get the property resolved, but we can help! Before you get started thinking about ways to give it away and move on, consider a few of our practical solutions that will help you utilize your land in Kentucky or retain your stored equity.
Solutions For Unwanted Land In KY
“Land For Rent In Kentucky”
If debt was taken out to purchase the land it’s important that the debt is serviced. Regardless of who the lender is, you’ll want to give to Caesar what you owe him. It’s important to pay any lender as it will impact your credit score regardless of the size of the debt owed. A great way to get the land paid off is to rent it. That’s right! You can rent your land to a tenant and get them to pay for it. This will help you pay the debt and possibly provide you cash flow.
Believe it or not, many people cannot get approved to rent an apartment or home due to poor credit or prior circumstances and they are happy to pay to rent a plot of land. Some of these people are even cash heavy so they’ll enjoy living on your large plot of land. They may have a camper trailer or perhaps they just use the land for a campsite. Either way you can find a renter to utilize the land.
In some cases you can even find a business that wants to use the land for something. This route will depend on the zoning of the land the activity that they buyer wants to conduct; but it’s a viable option. There are a lot of possible routes you can take to rent out your land in Kentucky.
On the other hand, we wouldn’t be providing the best advise if we only shared the pros to this approach. By renting out your vacant land in Kentucky, it does mean that you’ll be a landlord. Renters know they are not storing equity in the property so they don’t always take the best care of things. Tenants tend to drag their feet when minor things pop up. They only call when there is a problem. Although it’s just vacant land that you’re renting to them, you’re still responsible for what goes on at the property and any issues that may arise. As the owner you’re responsible for providing a safe living environment.
You could avoid dealing with these issues yourself by hiring a property management company, but then you have to manage the property management company. The quality of service that each property management company provides varies based on the vendor so conduct your own due diligence before you sign a contract or agree to a long-term agreement. Finally, the con with hiring a property management company is that they will take a portion of the rent money so you may still be left paying some bills (property taxes, trash pickup, lot cleanup, etc.) depending on the agreement in place with your tenant.
Lease Vacant Land In KY
If you have a piece of vacant land that you don’t want to worry about tenants that will trash it, you can do a lease option. The agreement that you put in place can have specific line items that serve your needs and the buyers. Essentially, the tenants will pay rent and store credit to purchase the property over time.
This strategy is a good one for a multitude of reasons. For starters, since the renter is essentially the buyer, you are now acting as the lender. That’s right! You have been upgraded from a homeowner to the BANK. You are now allowing the tenant the opportunity to make a purchase and you’re carrying the note for them. Many times these type of transactions will behoove someone with a poor credit score or prior financial infractions on their record. You’re not just getting your unwanted vacant land taken care of. You’re actually helping someone make a transaction that institutional lenders wouldn’t approve. This type of transaction will actually help to improve the tenant’s credit for the future. It’s literally a win-win.
On top of the benefits you’re providing to the tenant, you can require a sizable down payment or deposit just like any other lease. A deposit is required for any lease and land should be no different. Anywhere between $2,000-$5,000 (or more, but we never allow less) is reasonable. It may seem like a lot, but many people are happy to pay this kind of deposit as they could not get this deal through traditional lenders.
Another good thing about a lease to own option is that you can charge a slight premium per month as the tenant is a buyer rather than a renter. They know you are doing them a favor by holding the note on their behalf while they pay it off so many are fine to pay a slight premium per month. Finally, since the tenant is aiming to purchase the property, they usually don’t tear it up like a renter because it will ultimately be their property if they buy it. We recommend that you make the tenant responsible for maintenance and trash removal in the lease agreement. This is fair as the land is essentially meant to be theirs once they make all payments per the lease agreement.
The downside to this route is that you have to find a tenant willing to do a lease option. This isn’t that hard and you can even outsource this job to a realtor that will usually charge a flat rate or the first month’s rent. Another con associated with this plan is that if the renter stops paying the monthly rent, they are leasing the property so they have what is called an “equitable interest” in the property. Therefore, in Kentucky, you cannot simply evict them. You have to go through the Kentucky foreclosure process with the tenant. In Kentucky, foreclosure is a judicial matter rather than a civil one, meaning that you’ll have to get lawyers involved and go through the courts to get anything done. This can drag on for months or potentially years depending on all of the circumstances. (We help people avoid foreclosure in Kentucky, but that’s more for the tenant).
You Own Your Big Vacant Land Free And Clear
If the land you own does not have any debt associated with it, congratulations! You are one of the select few that had the foresight and self control to avoid refinancing or spending equity. This is rare, but the good news is that you have time at your disposal. Look at you, BIG MONEY BAGS! You can address the property as you see fit because there isn’t a monthly payment obligation pushing you. On the contrary, you still have property taxes to service each month. Additionally, it’s better to keep a property inhabited rather than leave it vacant. Oftentimes vacant properties can draw uninvited guests like squatters! The laws are different in each state, but the time one’s spends on a property can provide them leverage in a dispute of ownership regardless of their real ownership rights.
Just because the land if free and clear does not mean that you should leave it unkempt. It’s best to address the property to avoid paying unnecessary taxes or any other issues that might arise on the property.
If you’re contemplating developing the land or selling it just consider what matters most to you. Are you capable and able to develop the land to get a house built or potentially another structure? Do you have the energy and mental fortitude to take on the development? Can you handle managing contractors and government municipalities? If you’re up for challenge, great! If you’re worried about investing energy, time and money into the property just to break even, then you may want to consider selling it it as-is.
It’s tough putting effort and resources into a land project only to break even. Sadly, that is often what happens when we take on projects that we shouldn’t. Nevertheless, you can and will learn a ton from the process.
Who Buys Land In Kentucky?
We buy land in Kentucky! But, unfortunately, to many, vacant land in Kentucky is an added burden that becomes their problem at the time the the purchase. Many bite off more than they should. It’s understandable though. When you get started with a family, you want room to grow and spread out and a vacant piece of land sounds like a great idea! After all, maybe you could build something out there in the future… When considering selling, a piece of land, it’s not really something that interests an average buyer. It makes selling a vacant piece of land hard to attract the right buyer. Whether you hire a realtor or list your land for sale in Kentucky on your own, it’s a big undertaking.
Believe it or not, there are actually individuals and companies that buy land in Kentucky. It may sound far fetched, but real estate investors and “cash for land” companies purchases vacant undeveloped land all of the time. They specialize in developing and building on properties to bring them to their full potential. These companies flip vacant land regularly and they are not afraid of buying large plots of land. If you’re not interested in doing all of the hard work, managing zoning regulations and paying the expensive development costs that come with vacant land, then selling your land in Kentucky to a cash buyer (like our company: We Buy Property In Kentucky) is a great way to get cash for your KY land and move on with ease!