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Estimated reading time: 4 minutes
I know what you’re thinking: “It’s too good to be true.” In this video, Becky from Becky’s Homestead explains how people with very little money can get themselves a small plot of land.
To be clear, she doesn’t mean literally no money. But as you’ll see, owning a piece of land in the countryside is not a pipe dream. In fact, it is very doable.
You can watch the full video below, but if you prefer text, I typed up all six steps. Scroll down to read them.
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Step 1: Gather Local Newspapers
You’re going to have to do more than a simple Google search for “land for sale.” You need to gather local newspapers from counties all over the state you want to live in. I recommend going on a trip for a few days to check out the area and gather papers as you go. Oftentimes, there are great deals in these papers that get overlooked.
Step 2: Search The Newspapers
Get out a Sharpie and search for land for sale by owner because if you try to go through a bank, they’ll probably turn you down for having little money or bad credit. Remember, the property you get doesn’t have to be that large.
Several years ago, my parents purchased 60 acres of land, but it ended up being way more land than they needed. Most of the garden and livestock was on just a few acres, and the rest of the land just sat there unused. What a waste! As Becky says, “Two to three acres is plenty of land for a homestead.”
Step 3: Call The Owners
First, ask them straight up how much they want for the down payment. It’s best to be friendly and honest, but direct. If the down payment is too high, you might be able to talk them down a little.
Second, ask what they want for the interest rate. Shoot for 8 – 12%. Without a lot of money or good credit, you’re unlikely to get anything for lower than that.
Step 4: Investigate The Property
Get the full legal address of the property, including the county it’s in. Once you have that, find the county’s website to find the property appraiser’s office, specifically the zoning department. (You should be able to do this online, but if not, you’ll have to go to the brick and mortar office.) Then you need to do two things:
- Find out if the property is zoned “residential/agricultural” or just “agricultural.” It needs to have the word “agricultural” or you won’t be allowed to have a homestead on the property. Other than dogs and cats, most animals aren’t allowed in strictly residential areas.
- Find out if the property is in the “hundred years flood zone.” You don’t want to live in a flood zone, not just because it might flood, but because it’s probably a very damp and wet piece of property which is not good for animals. You need high and dry land if you want your animals to be happy and healthy.
Step 5: Visit The Property
Call the owner first to make arrangements, then drive to the property and check it out. You want to walk around, have a good look at everything, and make sure it’s a suitable place for a homestead. Here are three things in particular that you should look:
- A Well – You can always add a well yourself, but you’ll save time and money if there’s already one there.
- A Septic System – Again, you could put this in yourself, but having one already there would be very convenient.
- Flat Land – It’s hard to use land that isn’t flat, and as a homesteader, you want to use as many square feet as possible.
Step 6: Find a Title Company
For a fee, a title company will research the seller to make sure they’re the actual owner of the property, and they’ll make sure there are no liens on the property. This could potentially save you a lot of legal trouble.
That’s it. Sign the contract and you are an official landowner!
Check out the full video on Youtube to read the comments and ask Becky any questions you might have.
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FAQs
There are several options. One is a land loan. However, you may also qualify for seller financing, local lenders, or a home equity loan.
How to invest in land without money? ›
Some examples of how to buy land with no money are:
- Scrutinize Listings.
- Residential and Commercial Land Investments.
- Row Crop Land and Land for Livestock.
- Small Farm Investment Opportunities.
- Real Estate Crowdfunding.
- Hard Money Lenders.
- Equity Partnerships.
- Seller Financing.
Can you buy land in Texas with no money down? ›
Option #3: Land & Home Loan Packages
Many of these loans can be approved with as little as 5% down and some can be approved with 0% down if the land is in a rural area.
How to save money to buy land? ›
Start A Separate Savings Account
This will make it less tempting to spend it on non-essential purchases. Watching your savings account grow with every deposit will encourage you along the way to making your dream of owning land a reality.
How can people afford to buy farms? ›
Working with USDA
You can use FSA loans to pay normal operating or family living expenses, purchase and develop farmland, implement approved conservation plans, and buy farm structures, seeds, livestock and equipment.
How much is 1 acre of land worth in Texas? ›
How much does land cost in Texas per acre? The price varies widely based on location, land use, and features. As of 2023, the average price is about $4,670 per acre, but higher prices can be expected near urban areas and lower prices in rural regions.
How do you buy land and make it pay for itself? ›
Highlight the Potential Uses for Your Vacant Land
- Residential Development. ...
- Agricultural or Farming Activities. ...
- Commercial or Industrial Opportunities for Your Raw Land. ...
- Recreational or Eco-Tourism Possibilities. ...
- Leasing Land to Hunters. ...
- Leasing Raw Land to Farmers. ...
- Leasing Land to Grazers.
How do you turn land into money? ›
50 Ways to Make Your Land a Profitable Commodity
- Allow tiny houses to rent or buy portions of your land.
- Look into the opportunity of harnessing wind energy.
- Generate solar energy.
- Sell a portion of your land.
- Plant a vineyard and bottle your own wine.
What type of land to invest in? ›
For small investors to truly enjoy the more traditional sense of land ownership, perhaps the best options are timber farms, mineral development lands, vegetable gardens, orchards, vineyards, and recreational land.
How to buy a farm with no money in Texas? ›
Direct Farm Loans
FSA makes direct and guaranteed farm ownership (FO) and operating loans (OL) to family-size farmers and ranchers who cannot obtain commercial credit from a bank, Farm Credit System institution, or other lenders. FSA loans can be used to purchase land, livestock, equipment, feed, seed, and supplies.
It might not have the cheapest land on average, but Texas is home to one of the top ten cheapest places to buy land. In South Texas, you can find land at prices far below the state average, and far below the average price of land in the state with the lowest average.
Can I claim land in Texas? ›
Under the theory of adverse possession, you can claim ownership of property that belongs to someone else. Under Texas law, your possession of the property must be exclusive, open, continuous, and without the permission of the property owner for 3-10 years, depending on the circ*mstances.
Is it better to have cash or land? ›
CASH IS KING – Maintain your liquidity - Purchasing land requires a HUGE capital investment. Once the cash is spent, you lose your ability to act quickly on future needs and investment opportunities. Liquidity is how quickly your assets can be converted to cash.
Is it smart to buy a piece of land? ›
Is buying land a good investment? In most cases, the answer is yes - as long as you're properly prepared. Investing in undeveloped land, however, isn't quite as simple as putting money down on a duplex. To ensure you're making an informed decision, we've outlined our top seven tips to know before purchasing land.
Is land a good asset to own? ›
Is owning land an asset or liability? The land is considered an asset because it offers numerous opportunities to gain high returns in the long term. Land requires zero maintenance and appreciates high with time and if the land is in high demand location.
How to buy land and make it pay for itself? ›
Highlight the Potential Uses for Your Vacant Land
- Residential Development. ...
- Agricultural or Farming Activities. ...
- Commercial or Industrial Opportunities for Your Raw Land. ...
- Recreational or Eco-Tourism Possibilities. ...
- Leasing Land to Hunters. ...
- Leasing Raw Land to Farmers. ...
- Leasing Land to Grazers.
Why millionaires are buying land? ›
The transfer of wealth from one generation to the next, known as the great wealth transfer, is driving billionaires to invest in land in the United States. This provides a means for them to preserve their wealth for their heirs and secure their financial future. However, this is not the only reason for this trend.
Is buying land a good investment? ›
Over the past 50 years, California land has seen consistent, steady gains - outpacing inflation and many other markets. While prices fluctuate in economic cycles, the long-term trajectory has been upward thanks to high demand and limited supply.
Should I go into debt to buy land? ›
Paying cash for raw land is a great way to be competitive with your offer and save money in the long-term. An all-cash purchase certainly has its benefits – a quick closing, a seller more likely to accept your offer, and you don't have to wait on appraisers, attorneys, lenders, etc.