The US economy experienced an unprecedented increase in inflation rates in May 2022, which set off a series of events that forced the Federal Reserve to take drastic action and raise interest rates for the first time since 2000. It increased rates by 0.75 percent once more a month later, which hadn’t happened in 28 years.
As the real estate market does not appear to be slowing down, buyers are under pressure to close deals more quickly in order to avoid further interest rate increases. Even so, many people worry that the rising interest rates will affect their fixed mortgage rate or their loan eligibility as they rush to close deals with buyers and brokers.
Seller-financed land deals as the new option
To circumvent the strict debt-to-ratio requirements of banks, consumers are turning to seller-backed financing for their land purchases.
An owner-financed land deal offers flexibility to work out the deal between buyer and seller. It is also cheaper than paying high bank fees, loan arrangement fees, closing fees, broker fees, and high-interest rates (fees and hidden costs can be thousands of dollars when gaining lending through an institution).
In most seller financing arrangements, the seller carries the mortgage on the subject property, which the buyer pays each month. While this is a viable option for eligibility problems, it still exposes buyers to high-interest rates.
Land companies like Once Upon a Brick Inc. Land Investments adopt a similar approach to address the current issues in real estate purchasing but without needing to carry a mortgage from lenders or banks since the company or its partners own all listed properties.
Could this company offer the best seller-financed deals in the market?
Once Upon a Brick Inc. Land Investments has total control over pricing and installment periods, giving it the freedom to offer land for sale without interest, added fees, and credit checks.
Most properties are offered for only $100 a month, making it affordable for the average consumer. Unsurprisingly, it has attracted many buyers as the process is much more straightforward than traditional methods of purchasing properties through bank financing.
Furthermore, since Once Upon a Brick Inc. Land Investments owns all the land listed, they are virtually unaffected by the rising interest rates set by the Federal Reserve.
Since its launch, the firm has closed deals with more than 300 clients, and with current trends in the economy and the real estate industry, this figure will likely explode in the next few months.