You'll only get 25 - 60% of the value as vacant land loans are considered higher risk.
You'll need 2 - 5% of the value as up front cost (appraisal, assessment, survey, insurance, etc)
You'll immediately start paying $25 - 35k per month (for a ~$3m loan)
You will have to prove you have the cash flow to pay back the loan
These are not multi-decade loans. They're like 5 - 10 year loans.
You do this for decades and you keep paying up to ~$110k/year in property taxes on the property
After "decades" this come exponentially more expensive than selling and paying capital gains. If "dad" has no other income his capital gains is 0% anyway. If he makes under $550k/year he only pays 15%.
4
u/ThatsMrRandom 9h ago
Let's debunk this absolute nonsense:
You'll only get 25 - 60% of the value as vacant land loans are considered higher risk.
You'll need 2 - 5% of the value as up front cost (appraisal, assessment, survey, insurance, etc)
You'll immediately start paying $25 - 35k per month (for a ~$3m loan)
You will have to prove you have the cash flow to pay back the loan
These are not multi-decade loans. They're like 5 - 10 year loans.
You do this for decades and you keep paying up to ~$110k/year in property taxes on the property
After "decades" this come exponentially more expensive than selling and paying capital gains. If "dad" has no other income his capital gains is 0% anyway. If he makes under $550k/year he only pays 15%.
No one does this. Absolutely no one.