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Old Yesterday, 05:59 AM
 
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We have a cabin and a piece of land that we have an easement through. We assumed and gambled, given the circumstances that no one would want to purchase the land, given our easement going all the way through the property, but now someone has made an offer.

After discovering that we run a vacation rental legally on our property, I believe these people may withdraw their offer soon. Therefore, we want to try to purchase it asap in order to prevent someone from getting it. We do not have the money at this point to purchase the land outright, so need to come up with a financing option.

We are considering a HELOC or a 2nd mortgage. We have a lot of equity in our first home as well as 812 and 811 credit scores. Can anyone advise on the best option here? Either one of these options or another option I'm unaware of?

Thank you!
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Old Yesterday, 06:03 AM
 
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I would never put my home at risk
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Old Yesterday, 06:05 AM
 
Location: Cary, NC
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Check these folks out:

https://farmcredit.com/state/colorado
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Old Yesterday, 06:06 AM
 
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Quote:
Originally Posted by mathjak107 View Post
I would never put my home at risk
We are nervous about that too. It is not a large amount - probably around $30,000. We were considering taking a HELOC anyway, to remodel our kitchen. How would taking it to buy the land be different from taking it to remodel our kitchen?
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Old Yesterday, 06:19 AM
 
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The fact you say you donít have the money is the scary part ...that is different then when someone uses hemlock money while letting their own grow somewhere else
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Old Yesterday, 06:32 AM
 
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Quote:
Originally Posted by mathjak107 View Post
The fact you say you donít have the money is the scary part ...that is different then when someone uses hemlock money while letting their own grow somewhere else
We have the income to pay it off rather quickly but have been putting much of it in investments at this point. So, we aren't concerned about being able to pay it off, but just need cash quickly. Therefore, looking at the best option to get the money quickly. We will also look at a conventional loan.
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Old Yesterday, 07:34 AM
 
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I'm trying to visualize your situation. Am I correct in assuming that the easement is an access easement so that you can drive through the adjoining parcel to reach your cabin? I have a very similar situation in that I own a small 2-acre riverfront property and there is a road easement through my property so that a neighbor can access his cabin upstream. The road easement limits where I could build on my property, but it doesn't prevent such development. I would gladly sell my land to my neighbor if the price were right.

How much does the easement restrict use of the adjoining property? How much does that affect the value? Those are things that you need to consider if you decide to make an offer. Easements can have a significant negative impact on the actual market value. (Boy, do I ever know that!) By the way, how large is the parcel that you'd like to buy? The smaller it is, the more an easement might impact its value.

One thing you could do is ask the adjoining landowner if they would be open to selling on a Land Contract. The title wouldn't pass to you until the Land Contract was paid off, but it's an easy way to purchase land (especially) if other financing is difficult to obtain. All terms to a Land Contract are negotiable (price, down payment amount, interest rate, repayment term, etc.), provided a Seller is willing to do Seller financing. If that seems like an option, make sure to get legal advice in setting it up. It's easy to skip appropriate due diligence when purchasing on a Land Contract, so be sure that you know what you're getting into. Don't forget about title insurance, a boundary survey and other things that you would normally do if you purchased through regular bank financing.

Last edited by jackmichigan; Yesterday at 07:43 AM..
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Old Yesterday, 08:15 AM
Status: "The beach Life" (set 22 hours ago)
 
Location: Living on the Coast in Oxnard CA
15,831 posts, read 26,965,238 times
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Is it possible to buy the land and separate the space needed for the easement, connecting it to the other property? In one city near us they have these flag lots behind a front lot. So the front lot is connected to the street and the flag lot has a road that leads back to the rear lot. The lot resembles a flag pole (driveway) and the flag (the actual lot)
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Old Yesterday, 08:57 AM
 
Location: NC
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Perhaps you could buy the lot directly from the owner with a small down payment followed by a big balloon payment after you combine the two lots into one and refinance. A few moving parts, but should be doable, especially if you have enough equity.
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Old Yesterday, 09:23 AM
 
Location: Salem, OR
14,070 posts, read 33,145,392 times
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A HELOC would be the way to go if you can't work out a land sales contract for a short term loan. The land sales contract is the fastest. HELOC's can take 2-4 weeks depending on the lender.
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