How to Buy Land With No Money Down or Get It at an Amazing Discount

I’m Ted Thomas, and today I’m answering your question about how to buy land with no money down.

For the past 30 years, I’ve been involved in a subset of the traditional real estate business. Traditional real estate is considered single-family homes, vacant buildable residential lots, small apartments, and small office buildings.

This subset of traditional real estate is the same type of property, except the owners have failed to pay property taxes. These are now referred to as tax-defaulted properties, and the local governments would like to get rid of them.

We’ll talk about how an investor could purchase tax-defaulted properties for 60%, 70%, or 80% less than the tax assessed value.

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Getting a Land Loan Via Seller Financing

Let’s talk about how to buy land with no money down. What is the lowest down payment for land?

When it comes to land, in many instances, the expectation of the seller is a huge down payment of 30% or 40%, and many are willing to carry or be a mortgage lender for the remaining balance of the purchase price.

The document that is used for this type of sale is referred to as a Land Contract or a Contract For Deed.

Generally speaking, loans are difficult to obtain from a local bank when they are aware that the loan is for land. Bankers feel the risk is too high.

learn how to buy land with no money down

The Typical Down Payment on Land Purchase

Though it’s not unusual for a seller to request a down payment that is high, sellers are motivated in high-interest markets to accept installment sales.

Many in the market are searching for a low or no down payment. With the seller acting as the banker, these are rare in good markets because they are the only financing in the poor real estate markets.

Buildable residential land can be readily purchased and financed with payments because they are easily sold and have considerably higher values. They are commonly sold with 20%-25% down payments and long-term financing of 10 years.

Can You Buy Land With a USDA Loan or VA Loan for No Money Down?

Here’s how to buy land with no money down. Two distinct programs stand out, USDA land loans and VA loans.

The United States government grants eligible buyers the opportunity to buy land and build on that land, if they are doing so in a remote area.

These are little-known Department of Agriculture loans, which encourage people to own homes and tracks of land for farming. The department of agriculture will offer 100% loans for buildings in rural areas.

Additionally, another zero-down loan will come from the Veterans Administration. This is a loan which Is guaranteed by the United States Veteran Affairs for people who have served in the military. The objective of the loan is to help military people to get started.

It is not easy to purchase land with zero down payments, especially raw land. These loans when they are made have high-interest rates and require special skills for the purchaser in order to pay the high-interest rates.

An Alternative Way to Buy Land

I’m a solutions guy so here’s an alternative that includes raw land, improved land, and residential vacant lots.

These properties are called tax-defaulted, and they are available in all 3,000+ counties. These are properties like homes, vacant residential lots, small farms, and small office buildings that have defaulted on taxes. The treasurer of the county has confiscated the properties and will sell the properties at auction to the highest bidder.

For over 200-years this subset of traditional real estate has been mandated and executed in all of the states in all of the counties.

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how to buy land at a tax sale

How to Buy Land at 60%, 70% or 80% Below Value

The county does not want these tax delinquent properties. To facilitate the sale and make the auction move along quickly, the treasurer will discount the auction price by 60%, 70%, and 80% below the tax assessed value.

The county will sell at a low price with starting bids of just the back taxes, and when the property is sold at auction, the treasurer is authorized to delete the mortgage or deed of trust loan.

Some of the properties that can be purchased are raw land, farms, and rangeland.

In all 3,000+ counties, the treasurer will auction tax-defaulted real estate at least each one year, however, in some counties, it will be multiple times.


We hope you enjoyed Ted’s lesson, “How to Buy Land With No Money Down”

The USDA and Veterans Affairs are good places to look for no money down loans on land. Seller financing may also be available for no money down if you can find an agreeable seller.

If you have some money to put down, you may want to consider a tax defaulted property auction, where land is sold mortgage-free at discounts of 60%, 70, or 80% or more of the tax assessed value.

If you’d like to know more about tax delinquent real estate investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.

learn how to buy land with Ted Thomas' Free Master ClassYou can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!

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The Ted Thomas Difference:
  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tat defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

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