What Is a Land Note? (And Should You Sell It in 2025?)

Introduction

Ever sold land on seller financing?
Then you’ve probably created a land note — whether you realized it or not.

A land note is one of the most overlooked sources of passive income in real estate.

But should you keep collecting monthly payments — or sell your note for fast cash?

This post will break it all down.

🧾 What Is a Land Note?

A land note is a legal IOU between you (the seller) and the buyer. It’s created when you sell land with seller financing.

It outlines:

• Purchase price

• Down payment

• Interest rate

• Monthly payments

• Term length

• Late fees and default clauses

You are the note holder, and you earn monthly income from the buyer — just like a bank does on a mortgage.

💡 Example Land Note

Let’s say:

• Sale price: $12,000

• Down payment: $500

• Monthly payment: $225

• Term: 60 months

• Interest: 10%

That note earns you $13,500 total, with $11,000+ in passive income after your initial cost is recouped.

💸 Why Keep a Land Note?

✅ Predictable Passive Income

You get consistent monthly payments — great for stability and long-term ROI.

✅ No Tenants, Toilets, or Turnover

Unlike rental property, land notes are truly hands-off.

✅ You Keep the Deed

If the buyer stops paying, you can reclaim the land without court foreclosure in most states.

🤔 Why You Might Want to Sell Your Land Note

Selling your note means you get a lump sum instead of waiting years for monthly payments.

Common reasons to sell:

• You want to reinvest quickly

• You need cash now

• You want to de-risk your portfolio

🎯 Note buyers will typically offer 60–85% of the remaining note balance — depending on credit risk, payment history, and interest rate.

🏦 Where to Sell a Land Note

• Note Investing Groups (on Facebook or BiggerPockets)

• Private Buyers (land investors who want cash flow)

• Note Buying Companies (like First National Acceptance Company or Amerinote Xchange)

Be sure to:

• Prepare a payment history ledger

• Have the original signed land contract

• Get a current balance statement for negotiation

⚖️ Should You Keep or Sell?

🛠️ Tip: Make Your Notes More Valuable

• Charge 8–12% interest

• Require $500+ down payments

• Verify buyer ID & address

• Collect payments through platforms like GeekPay or ZimpleMoney

• Keep excellent records

📘 Ready to Learn More?

• 📗 FREE Land Investing Bible (30 Pages)

• 🛒 Available Land for Sale with Owner Financing

• 🔍 Find Your Dream Parcel Tool

Final Takeaway

A land note is more than a contract — it’s a stream of predictable passive income.

Keep it if you want cash flow.
Sell it if you want capital now.

Either way, land notes are a powerful tool every smart investor should understand.

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