Most land investors use two companies for one deal: a lender to buy the land and, later, a note buyer when they resell on terms. We do both. We fund the purchase, you resell with owner financing, and at the resale closing we buy the note, pay off our own loan from the proceeds, and send you the rest.
Here is how the full cycle works, with every dollar on one example deal.
How does financing the land and selling the note work?
We lend on the purchase, you resell with owner financing, and we buy your buyer's note at the closing, which pays off our loan the same day.
- Buy the land with our loan. Up to 65% of value, 20% down, no appraisal, close in about 7 days. See land flip financing.
- Market it with owner financing. Most land buyers cannot get a bank loan, so offering terms brings more buyers. See why to offer terms from day one.
- Send us the buyer and the terms before closing. We confirm what we will pay for the note.
- Close once. Your buyer signs the note, we buy it at closing, and the closing agent pays off our loan from the proceeds.
- You leave with cash. The buyer's down payment plus the note sale, minus the loan payoff.
Buying land to resell on terms?
Purchase loans from $30K to $1M, and we buy the note when you resell. Written quote in 24 hours.
Get a Free QuoteSell Your NoteWhat does the math look like on a real deal?
On this example, you collect 88% of the sale price at closing and clear about $22,450 after loan costs.
This is an illustration built from our published terms, not a loan or note offer. Your numbers depend on the parcel, the price, and the note terms.
| Step 1: The purchase | Amount |
|---|---|
| Retail value of the parcel | $100,000 |
| Your purchase price | $60,000 |
| Your down payment (20%) | $12,000 |
| Our loan, 16% interest only | $48,000 |
| Monthly interest | $640 |
| Closing fee at purchase | $600 |
| Step 2: The resale on terms, 6 months later | Amount |
|---|---|
| Sale price | $100,000 |
| Buyer's down payment (20%) | $20,000 |
| Seller financed note | $80,000 |
| We buy the note at 85% of balance | $68,000 |
| Cash to you at the resale closing | $88,000 (88% of the sale price) |
| Step 3: The payoff, same closing | Amount |
|---|---|
| Loan principal | $48,000 |
| 2% exit fee | $960 |
| Paid to us from your proceeds | $48,960 |
| Cash left for you at closing | $39,040 |
| What you made | Amount |
|---|---|
| Cash back at the resale closing | $39,040 |
| Minus your down payment | −$12,000 |
| Minus 6 months of interest ($640 a month) | −$3,840 |
| Minus closing fee and servicing ($600 + $150) | −$750 |
| Profit before title, marketing, and taxes | $22,450 |
Takeaway: the $12,000 you give up on the note buys you cash today instead of 10 years of payments, and it pays off your loan in the same closing. With 20% down from the buyer, sellers usually collect 84% to 92% of the sale price at closing.
Why use one lender for the loan and the note?
One underwriting on the same land, no second company to satisfy, and a deal built from day one so the note is easy to sell.
When a separate note buyer looks at your deal, they are seeing the land for the first time. They may reject the note, or price it lower, after you have already sold. When we funded the purchase, we already know the parcel, the value, and the access, so there are fewer surprises at the resale closing. We also tell you up front what note terms we buy, so you can list the land on terms that work.
What makes the note easy to sell at closing?
A promissory note secured by a deed of trust or mortgage, on land that meets our note buying criteria.
- A promissory note with a deed of trust or mortgage. We do not buy land contracts or contracts for deed.
- At least a $25,000 note balance and a $50,000 property value.
- A perc test on lots under 10 acres, where there is no public sewer. See septic systems for land investors.
- Legal access, no substantial wetlands or flood zone.
- Not in CA, HI, LA, MD, NJ, NY, or PA for note purchases. Our loans are not offered in CA, AZ, NV, NY, NJ, ND, SD, or VT, so the full cycle works in states outside both lists.
The full list is on our note buying criteria.
How much do you pay for the note?
We pay 80% to 90% of the note balance, depending on the terms and the buyer.
The interest rate, the term, the buyer's down payment, and the property all move the price. A bigger down payment and a normal rate for land make a note worth more. Check a number before you set your terms with our note value calculator.
What if I would rather keep the monthly payments?
You can hold the note yourself and keep paying our loan, or wrap it.
Some investors want the interest income. In that case you keep collecting from your buyer while our loan stays in place, then pay it off or sell the note later. See wrap financing and wrap vs. paying releases.
Frequently Asked Questions
Can the same lender finance my land purchase and buy the note when I resell?
Yes. Damen Capital funds the land purchase and buys the seller financed note at your resale closing. The note sale pays off the land loan in the same closing.
How much of the sale price do I get at closing when I sell the note?
With 20% down from your buyer, sellers usually collect 84% to 92% of the sale price at closing: the buyer's down payment plus 80% to 90% of the note balance.
Does my land loan get paid off when I sell the note?
Yes. The closing agent pays off the loan, including the 2% exit fee, from the note sale proceeds, and the rest goes to you.
What notes does Damen Capital buy?
Promissory notes secured by a deed of trust or mortgage, with at least a $25,000 balance and a $50,000 property value, a perc test on lots under 10 acres, and not in CA, HI, LA, MD, NJ, NY, or PA.