Montana Land Buyer Realty
Seller and Buyer Benefits

Seller and Buyer Benefits

Potential of Owner Financing 

As longtime real estate agents for a land development company, Montana Land Buyer Reality we have experienced the seller and buyer side advantages of purchasing and selling vacant land. Typically vacant land does not have the equity that a bank needs to finance a transaction. A conventional bank loan generally requires equity on the land such as a house or structure that is attached to the land. Or it is willing to finance the vacant land if the buyer is ready to build. Typically a bank will start with a construction loan and then refinance once construction is completed. The bank generally favors land in minor subdivisions where infrastructure is in place.
With vacant land, especially rural undeveloped land without any infrastructure (road development, electrical power, well and sewer) in place requires unconventional lending. The buyer then needs to find a mortgage company that specializes in unconventional loans. 
Both of the above scenarios require extra cost to the buyer with origination fees, higher closing cost, extension fees (if construction is not completed during the time of the construction loan) and other miscellaneous cost.
The time and odds of a potential buyer meeting all of the requirements of a lender means that there are less chances for you to sell your vacant land in a timely manner. 
How owner/seller financing works
The basic instruments (or documents) of owner financing are a purchase agreement, contract for deed, uniform escrow agreement, reconveyance deed and warranty deed. Other documents include a closing (or settlement) statement, Abstract for title, and a financing and disclosure statement.
The purchase agreement defines the terms and conditions that both parties (seller and buyer) agree on before entering into a contract. The contract for deed allows the buyer to use the property as long as the terms and conditions of the purchase agreement are honored. 
The reconveyance deed is signed by the buyer at time of closing and allows the seller to take back his/her property should the buyer default. Typically reconveyance takes about 90 days. The buyer loses any improvement attached to the ground (such as a structure, well or sewer). 
The escrow company is a third party that holds all of the documents and receives payment from the buyer and disperses revenues to the seller. In essence the escrow company protects both the buyer and seller during the term of the agreement.
Once the terms of the contract for deed are completed the buyer is issued a warranty deed and clear title to the property.
Benefits of owner financing
1. The seller still owns the land until the contract is fulfilled.
2. The buyer is responsible for yearly property tax, starting at the time of purchase.
3. The seller is taxed on the yearly income instead of a one time capital gain tax. This could benefit a seller that has yearly deductions that might off set the income received.
4. The extra monthly income is gaining interest on the purchase price. 
5. If the buyer defaults, the seller keeps any down payment and all payments received.
6. In the case of default, the seller gets the property back and can resell it to a new buyer.
7. The Escrow Company takes care of payments and disbursements.
8. Montana Land Buyer Realty will find you another buyer! 
Disadvantage of owner financing
1. Seller gets her/his profit over time.
2. Seller might have to start foreclosure proceedings. Montana Land Buyer Realty can assist the seller should a default occur. 
3. Seller might need the cash before note is paid off. 
The following information is found on
Selling your promissory note 
The process of selling a privately-held mortgage note involves a series of steps that generally take three to four weeks to complete. A chronological outline of the steps necessary to complete the sale of a note is presented below.
1. The note holder begins their initial exploration into the possibility of selling their note.
2. After speaking with potential note buyers, the note holder makes their decision about selling their note, selects the best sale option for them and chooses the company they wish to do business with.
3. The note holder and chosen investor enter into a purchase and sale agreement for the sale of the note. The agreement will contain the sale price, the number of payments sold and who will be responsible for the expenses necessary to close the transaction.
4. The note buyer will complete their due diligence necessary to complete the transaction. The due diligence process normally includes the following:
      All pertinent documents will need to be reviewed, including the promissory note, mortgage, deed of trust or trust deed, and the settlement statement from the sale of the property.
       A credit report on the borrower will need to be reviewed.
       The note holder will provide a twelve month payment history on note, along with evidence when the payments were received.
        The note holder will provide a copy of the homeowner’s insurance declaration evidencing that the collateral property is insured and the note holder is named as an additional insured on the policy.
         A drive-by appraisal on the collateral property will be ordered and reviewed.
         A title search will be ordered and a commitment for a lender’s policy of title insurance must be issued by the title company.
         An estoppel letter will be sent to the borrower verifying the note terms and the current outstanding balance on the note.
         Just prior to the closing the borrower will be phoned by the note buyer who will introduce themselves and ask a few questions about the status of the note.
5. After all of the due diligence has been completed by the note buyer the closing can be scheduled. It is a matter of good business practice for the closing to take place at an attorney’s office or the title company that completed the title search.
6. At the closing the note holder will sign the closing documents and surrender the original note, mortgage and policy of title insurance.
7. Last but not least, the note holder will receive their sale proceeds from the closing agent via wire transfer or certified check. It is also important for the note seller to request a full set of copies from the closing agent.
Protecting your note
You've sold your property with owner financing and now own a promissory note and mortgage. The monthly payments you receive from the purchaser will provide an excellent source of income. Especially for people who don't feel comfortable investing in the stock market, but want to earn a better rate of interest than the banks are paying. Just like any other investment, however, it is important to know how to protect the value of your note.
Unlike most other investments, the note created when you sell property is backed by specific collateral. Protecting this collateral is imperative to maintaining the quality and health of your investment. As a mortgage holder, you have the ability to protect your collateral built into the mortgage document. Once you begin collecting payments however, it becomes your responsibility to monitor and enforce these provisions. In the remainder of this section, we present some important steps you can take to help protect your mortgage note investment.
Keeping your original documents safe
Promissory notes are negotiable, transferable documents. Safeguarding this document is extremely important. Many times the attorney that handled the property closing for you will keep these documents in their files and provide you with a copy. This can be satisfactory if you are going to maintain an ongoing relationship with that attorney. If not, or if you prefer to keep them yourself, store them in a safe, fireproof box or in a safe deposit box at your bank. Be sure to keep copies of the originals at home for your records.
After being recorded at the county recorder’s office, the original mortgage or deed of trust will be returned to you. It is a good idea to keep this original document with the original promissory note.
Keeping a payment history
Maintaining an accurate history of when you receive each of the monthly payments is essential. It will help prevent any misunderstandings between you and the borrower. It may also help the borrower refinance the mortgage if you have included a balloon payment. Most importantly, taking this step will help you receive the highest cash price for your mortgage should you ever decide to sell it. 
Along with updating your payment record each month, you should always deposit the payment into your bank account. This will provide you with a verifiable record of when you received each payment. Another suggestion would be to keep a copy of each check or deposit slip in a file with your payment record. Finally, in the event that you receive a payment after the grace period has expired, keep the envelope the payment was mailed in to help provide proof that you are entitled to receive the late payment penalty called for in your mortgage.
Property Taxes
Making sure the property taxes are paid is an important step that you should take to protect your investment. This will be easy if you are collecting escrow for the taxes. One thing you should do is to make sure that the tax bills are sent to you directly from the tax collector. From that point on, you only need to make adjustments in the escrow payment for increases or decreases in the amount of the tax or insurance. 
If you are not collecting escrow it is important that you verify the taxes have been paid. In order to do this you will need the tax parcel number, the phone number for each of the tax collectors and the date that each of the tax bills is due. With this information, you can call the tax collectors directly each year to verify the tax status. If the tax payments are overdue, contact the borrower right away to demand they are paid in full immediately.
Homeowners Insurance
Having an adequate amount of homeowner's insurance is essential for protecting your investment. Always make sure that you are listed as Lender or Mortgagee on the insurance policy and that the policy is written for at least the balance of the mortgage note. From that point on, watch for the renewal notice that will be mailed to you each year. If the renewal notice does not arrive prior to the expiration of the current policy, call the insurance agent to check on its status. 
If the insurance policy on the property does lapse, you can still protect your interest by either purchasing a new policy, or adding this property to your existing homeowner's policy. After protecting your investment, you will have the right to demand payment from the borrower and add the cost of the policy to the balance of the note.
Protecting the value of the property
It is the Purchaser's duty to protect the value of the property he or she is buying until it is paid in full. This clause is important because the value of the property is what keeps the Purchaser making payments. If the Purchaser ever defaults and suffers foreclosure, it is the value of the property that should enable the mortgage holder to re-sell without suffering a loss. It would be a good idea to drive by the property you sold on an annual basis at minimum. If you have moved out of the area, have someone you know do this for you. Fundamental changes to or deferred maintenance on the buildings on a property can seriously diminish the value of your investment.
Income Tax Reporting
If the property you sold is a home being used as the Purchaser's residence you must report to them the amount of mortgage interest they paid you during the year. The IRS requires that you provide them with this information by January 31 of the following year. You can generally determine how much of the payments you collected during the year was interest from the amortization schedule of the mortgage.
Late Payments
If a payment is ever late, we recommend taking the following steps: (1) Check the mortgage note to see if a "grace" period exists; if so, you must honor it. (2) If no grace period exists or if it has expired, phone the Purchaser and ask about the payment; insist upon payment; make a note of the date and time of the call and keep this information with your mortgage. (3) On the same day as the above phone call, write a letter that identifies the default and summarizes any action the Purchaser has promised to perform and mail it, certified mail, return receipt requested. (4) If the above steps do not produce the desired results contact an attorney. If mismanaged, trying to cure a default by yourself can cause problems. 
A failure to enforce any clause in your mortgage can, over time, establish the precedent that the clause is not binding and has no effect. In other words, actions speak louder than words. Consistent conduct over a period of time, in fact, can take precedent over the actual wording on your contract in a court of law! In short, stick to the language in the mortgage or be prepared to find it difficult to enforce in court. Declaring a contract to be in default and starting the foreclosure process is a serious matter and should be handled by an attorney familiar with the laws of the state in which the property is located. The biggest mistake made by mortgage holders in this area is (1) trying to take matters into their own hands, and (2) delaying the exercise of their rights. Begin to think in terms of foreclosure when the Purchaser is one month behind, not three or four months.
If the Purchaser fails to perform any significant part of the mortgage, the mortgage holder may have the right, after notifying the Purchaser in writing of the exact nature of the default, to declare the remaining balance due and payable. Then, if the default is not the cleared up or the mortgage note is not paid in full, the mortgage holder can begin steps to regain possession of the property. Improvements made to the property by the Purchaser then become the mortgage holder’s property. Defaults by the Purchaser may include failure to make timely payments, failure to properly maintain the property, failure to adequately insure the property, or failure to pay taxes on the property as they become due. 
Remember, you are not the "bad guy"...the Purchaser is the one not making payments. He or she can sell the property, refinance the property, or bring payments current. The ball is in his or her court, so to speak. Advise the Purchaser of the available options and of the fact that you are prepared to bring legal action. After an initial phone call and a certified letter, only swift and decisive action taken with the assistance of legal counsel is likely to cause the Purchaser to act. Be honest, firm and considerate. Don't harass and don't delay! 
Keep records of all written and spoken conversations with the Purchaser, including dates, times, and what was discussed. You will never know how or when these records will come in handy until you need them but don't have them. Then it's too late! Also, because your attorney will be required to appear in court, it is best to hire one who lives near the property in question. This will save you from paying travel time and other unnecessary expenses.
Reselling defaulted property
The seller (or note holder) gets the opportunity to keep all of the money that the purchaser has invested and the opportunity to resell the property. Montana Land Buyer Realty will relist your property and sell it for you again. Or you can decide to keep it! Depending on the circumstances and length of payments you may find that the property is worth keeping! Or the value has increased!

Montana Owner Financed Land For Sale

Montana Owner Financed Land For Sale

Beartooth Valley Ranch
  20 acre tracts
...high bench at foot of the Beartooths! Views - 4 mountain ranges!!

Price: Ask for current price...Owner Financing!   ~Off Grid lifestyle...National Forest Road access! Close to fly fishing! Sking! National Forest! More Public Lands! Near Red Lodge Montana a gateway to Yellowstone N.P.
Rural Living Lifestyle! Very rural...real mountain living. Develop your get-a-way!
About 1 hour southwest of Billings, MT (pop 100,000).
~Mild climate for Montana
~Good Elk, Deer, Turkey and Upland Bird hunting nearby.

Listings of semi remote property near Red Lodge Montana! Custer National Forest! Clark Fork River! Views Owner Financing!

BVR-936-7 (20 acres) $19,500 Flat ground great views great price! 
BVR 936-2 (20 acres) $22,500 Borders BLM lands! owner financing! 

BVR-947-4 (20 acres)  end of the road, borders National Forest and BLM lands good building site, good hunting $89,900!
BVR-947-13 (20 acres) spring, borders National Forest $89,500 

BVR 947- 21 $75,000 borders National Forest cash only.
BVR 947-1 (20 acres) borders BLM lands, end of the road! $59,900 owner financing!

Montana Ranch Land Owner Financed

Montana Ranch Land Owner Financed

Recreational Ranch Property in eastern Montana Pricing 

The Sarpy Creek Ranch is located in the quiet ranch lands of eastern Montana in the Sarpy (or as the locals call it, Hysham mountains). These 160 acre tracts are great for small ranchettes. Elk, deer, antelope, wild turkey and pheasant are abundant. Twelve miles to the north is the Yellowstone River with plenty of good fishing and migratory birds. To the west is the famous Big Horn River and south east (about an hours' drive) is the Big Horn Lake (a mini Grand Canyon)

Three properties left located in east side of the ranch. These are excellent properties each with something special to offer.

SC-17 $199,000 (160 acres) well, fenced, meadows, trees great horse property! (defaulted was $219,000) SOLD
SC-42 $229,000 (200+ acres) Partially fenced, varied terrain with cliffs, draws, meadows, private make an offer Call Jim 406 220-1563 

SC-22b $199,000 (160 acres) great views and draws, well, trees and plenty of privacy, fenced (defaulted was $229,000) SOLD
SC-27 $239,000 (160 + acres) has seasonal creek good pasture too!
SC-28 $229,000 (160 acres) a lot of open ground big views good native grass! 

NEW SC-30 $389,00 (349 acres) draws, pond, trees, meadows, basins, own your own hunting meca! Make an offer! call Jim 406 220-1563 NEW


James Kozlik   

(Mt. Lic. 10547)

406 220-1563 cell

Owner Financed Land Near Red Lodge MT

Owner Financed Land Near Red Lodge MT

PRICE REDUCED FROM $69,900 TO $59,500 SELLER WILL FINANCE WITH 0% DOWN Sold contract for deed 3/8/19
10 yr. term 9.9% interest $783.01/mo.
15 year term 10.9% interest $672.54/mo.  
20 year term 11.9% interest $585.90/mo.

Good building sites with some nice views of the surrounding mountains, the Beartooths to the immediate west the Pryor Mountains to the east and Heart Mountain to the south. Close to pavement and fishing access! Only a couple of miles (or less) to Custer National Forest. From the Custer N.F. land there is a road that connects you to the Clark Fork Canyon in Wyoming (a great recreation area). Borders thousands of acres of BLM lands. Beautiful views of the spires. Close to the towns of Red Lodge Montana and Cody Wyoming, gateways to Yellowstone National Park and the Beartooth Wilderness. Good fishing close by. There is a ski area at Red Lodge about a 40 minute drive from the property! Billings Montana (largest city in Montana) is about an hour away!

Call Jim 406 220-1563


Gorgeous views of Absaroka and Crazy mountain ranges and easy access to Livingston make this the ideal place to build your home. Perfect if you want acreage within 5 miles of Livingston, a gateway to Yellowstone National Park. The property already has a well in place and power nearby. You will find some very nice homes in the area. $154,000 3 acres. Owner willing to sell with owner financing, making it easy for buyers.

Call Jim for details 406 220-1563

Land Near Cody Wyoming Owner Financing

Land Near Cody Wyoming Owner Financing

This is Yellowstone Country!

Western Heartlands Ranch is what America was, a place where the cowboy culture thrives and where the new west begins. The vistas are spectacular, the land is wild, the people are genuinely friendly and the opportunities for outdoor adventure, recreation, and entertainment are as large and varied as the Wyoming skies.  These properties feature unparalleled views of the Bearooth Mountain Range,  and endless recreational opportunity.  With year round access, and power coming in the summer of 2012, these properties make a great starting point for all of your adventures!  
Within an hours drive or less are National Forest access to either the Shoshone National Forest (Wyoming) or the Custer National Forest (Montana), Trout fishing on the Clarks Fork of the Yellowstone River, Whitewater rafting, Big Horn Mountains, Big Horn Canyon Recreation Area (a mini Grand Canyon!), Chief Joseph Panoramic Highway, Cody Wyoming a gateway to Yellowstone National park, Red Lodge Montana and ski hill also a gateway to Yellowstone National Park, Cooke City and the famous Beartooth Wilderness.
The Western Heartlands Ranch and the Beartooth Valley Ranch (just north across the Montana state line) are ideal recreation properties for your vacation cabin. Ask for more information call: Jim 406 220-1563

Land Listings At Western Heartlands!
WH-123  (35 acres)  views and good year round access $42,500 SOLD
WH-129 views, good building sites, $39,500! SALE PENDING
WH-134 awesome terrain 40 acres borders BLM lands$69,500!
WH-113 35 acres. Unobstructed views of the mountains! several building sites, end of road! $37,500!
WH-140 35 acres, sandstone rock formations, varied terrain, do you like to hike? Borders BLM lands $42,500!
WH-149 35 acres 360* views of surrounding area, end of round, awesome build site varied terrain $47,500

All owner financed 10% down 10,15 and 20 year terms. Ask me for details.  Jim 406 220-1563 (Agent for RMT land developer)

Eastern Wyoming - Remote Land - Owner Financed

Eastern Wyoming - Remote Land - Owner Financed

Cedar Canyon Ranch is located north of Douglas and Lusk Wyoming. Less than an hour from Glendo Reservoir and Glendo State Park. This is in a remote area yet easy to get too. It used to be a hunting ranch for trophy mule deer. Good antelope hunting too! There are wild turkey in the area. The Hat Creek Recreation Area also is known to have some elk. Deep cedar lined canyons with plenty of good building sites. A 30 minute drive to Lusk for all your amenities and about 40 minutes to Hot Springs and the famous Black Hills of South Dakota! No power...please read the property summary sheet for more information. Contact me if you have any questions, or would like to arrange for a showing.

CCR-29 (35 acres) borders BLM lands $49,900 owner financing! OAC
CCR-25 (35 acres) borders BLM lands great mile deer hunting! $59,900
CCR-41 (35 acres) borders a section of State Land, easy access! $49,900 10, 15 or 20 year terms!
NEW CCR-9 (35,acres) Deep draw, trees, awesome views $59,500 OAC NEW

10% down 10,15 and 20 year terms!

James Kozlik

RMT - Sellers Agent

406 220-1563

Central Montana - Bull Mountains - Possible owner financing

Central Montana - Bull Mountains - Possible owner financing

Round Up Mesa property (RM-57) is the best location about 40 minutes from Billings which is the largest city in Montana. The property is only a couple miles north of town (Round Up). You might even find work there. Power on site, views of the Little Snowy Mountains with some trees and good grass. This is a really nice tract of land, private, easy access and right off the highway so it's a quick drive to town or work! I have been on this tract several times and found some nice building sites set back from the highway. There is a 55,000 acre Block Management Recreation area about 40 minutes from the property in the Little Snowy mountains along Willow Creek (good trout fishing. You will find elk,deer, black bear, wild turkey and other wild animals there. Good pheasant hunting in the area.


This is a gorgeous end of the road 20 acre parcel a few miles north of Roundup, MT. The property offers two access roads, both with power available on the north and south end. Views of both the Bull Mountains and Snowy Mountains. Lots of alfalfa on the property to draw in wildlife and good for horses. Nice balance of trees, meadows and rim rocks with elevated bench for potential building site. Block Management nearby with great hunting. Also nearby rivers, creeks and lakes for fishing..

Owner said she might consider owner financing with 20% down to qualified buyer. We can discuss possiblities. Call Jim 406 220-1563

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