What are land notes?
When clients purchase real estate from ZARZAR LAND, many times they make monthly payments. Because of the huge demand worldwide for real estate land notes from individual and institutional investors, from time to time ZARZAR LAND offers its land notes (the monthly payments it receives from clients for the properties they purchased) to investors so that they may build their real estate portfolio with small dollar amounts as well as receive additional monthly income.
How can an investor make money investing in land notes?
Investors purchase a land note at a discount from its value. For example: if the land note for sale on a particular listing is valued at $4,792.11 and an investor purchases the land note for $3,354.48 the investor would make approximately 30% on the investment just by waiting every month to receive the corresponding monthly installment until the total is paid by the land owner. Add the interest payments and late fees, if any, and the potential profit could be much higher than 30%.
What are the risks?
The main risk is that the land owner can default on his property monthly payments. However, ZARZAR LAND has a built in protection guarantee. Basically, because ZARZAR LAND keeps the titles until properties are paid for by the property buyers, if a property buyer defaults on their property, ZARZAR LAND then proceeds to sell the property on the open market and secure a new buyer. Once that is done, ZARZAR LAND makes sure that the note holder starts to receive the monthly payments until the note holder has received the original amount that the note holder was supposed to receive when the note holder purchased the land note through ZARZAR LAND. Very few corporations offer that built in guarantee. Thus, even though the property is backed by real estate the note owner would never receive the real estate in case of a default (except for land notes that come with the 6 month clause as explained below). Instead, the note owner would receive cash until the dollar amounts that the note owner was originally scheduled to receive have been received. Any additional profits would go to ZARZAR LAND in order to cover the expenses incurred in reselling the property on the open market.
Therefore, the risks are minimal, if any. However, there is the risk of time which is the time it takes from default to selling the property again and securing a new buyer (usually no more than a few weeks or months at the most, but there are never any guarantees about how fast a property can be sold in the open market). During this period the client does not receive any monthly payments. Also, please keep in mind that some land notes come with a clause that if after the land owner defaults, and ZARZAR LAND takes more than 6 months in reselling the property in the open market, both ZARZAR LAND and/or the note owner have the option to register the land to the note owner in which case the note owner would become the new land owner. This clause is added for further protection of the land note owner.
Land note owner also understands that the monthly payments forwarded will be the land owner's monthly payments minus credit card or merchant processing fees, if any, when land owners pay their monthly payments through credit card or electronic means.
Finally, please note that property tax late fees will go to ZARZAR LAND since ZARZAR LAND gets late fees billed by the county if the current land owner does not fulfill his property tax obligations in a timely manner.
Please feel free to contact ZARZAR LAND at 619-795-9253 during regular business hours Pacific time if interested in purchasing land notes valued between $1,000 and $25,000 each with monthly payments ranging from $100 to $600 per month per land note.
Thank you for your interest in
The Place For Land!
ZARZAR LAND is the world's most prestigious Internet land seller as well as the #1 most visited land auction conglomerate. A leader in Internet land auctions and land sales worldwide with marketing operations in over 51 countries and territories. ZARZAR LAND provides land auctions, land for sale, land sales, and land properties to individual and institutional investors worldwide.