You sold land on a land contract, also called a contract for deed. The buyer pays you every month, and now you want the cash. So you call note buyers, and many say no. Why, and what can you do?
We are one of those buyers that says no. Here is why, and what I would do in your shoes.
Can I sell my land contract?
Some buyers will buy one, but many note buyers, including us, will not.
With a land contract, you keep title to the land until the buyer pays in full. To sell it, you must transfer both the contract and the land itself to the note buyer. That makes the buyer an owner of the land, with owner risk, and many states have extra rules for ending a contract when the buyer stops paying. So most buyers pass or pay much less.
Why won't note buyers buy land contracts?
Ownership risk, messy defaults, and no title policy.
- Ownership risk. The holder owns the land. If someone gets hurt there, the owner can be sued.
- Defaults. Ending a contract for deed follows state rules that can be slow and uncertain.
- Title. Land contracts are often closed without a title company, so there is no lender's title policy.
- Regulators. The CFPB said in 2024 that contracts for deed on homes are credit under Truth in Lending (Federal Register), and scrutiny keeps growing.
We cover this in detail in why to avoid land contracts and promissory note vs land contract.
Selling land on terms again?
Use a promissory note and deed of trust, and we can buy it at closing for 80% to 90% of the balance.
Get a Free QuoteSell Your NoteWhat are my options if I have a land contract?
Keep collecting, let the buyer refinance, or convert it to a note and deed of trust.
| Option | How it works | Catch |
|---|---|---|
| Keep collecting | Nothing changes | Slow, and you keep owner risk |
| Buyer refinances or pays off | Buyer gets a loan or cash | Few land buyers can get a bank loan |
| Convert to a note and deed of trust | You deed the land to the buyer, the buyer signs a note and deed of trust to you | Needs the buyer's agreement, a title company, and a lawyer |
Converting is the one that opens the door to selling. Once the buyer holds title and you hold a recorded deed of trust or mortgage, you have a note that buyers like us can bid on. Talk to a real estate attorney in your state before you try it, and close it through a title company.
Would you buy my note after I convert the land contract?
Possibly. Once it is a promissory note with a recorded deed of trust or mortgage, we can bid it.
We need no seasoning, so a new note is fine. It has to meet our criteria like any other note. We buy promissory notes secured by a deed of trust or mortgage with a balance of $25,000 or more, on land with legal access and no major wetlands or flood zone, and not in CA, HI, LA, MD, NJ, NY, or PA. Send it through submit your note.
How do I set up my next sale so I can sell the note?
Use a promissory note and a deed of trust or mortgage, and close through a title company.
That one change makes your note sellable. Better yet, send us the deal before closing. We provide the documents, screen the buyer, and buy the note at the same closing. See sell at closing.
Rule of thumb: if you might ever want cash for the payments, never use a land contract.
Frequently Asked Questions
Can I sell a land contract for cash?
Some buyers will buy one, but many note buyers will not because the holder must take title to the land. Damen Capital does not buy land contracts.
Why do note buyers avoid land contracts?
The holder owns the land and carries owner risk, defaults follow slow state rules, and land contracts are often closed without a title policy.
Can I convert a land contract to a promissory note?
Often, if the buyer agrees. You deed the land to the buyer and they sign a note and deed of trust or mortgage to you. Use a title company and a real estate attorney.
Will you buy the note after I convert my land contract?
Possibly. We need no seasoning. The note must meet our buying criteria, including a $25,000 minimum balance and a recorded deed of trust or mortgage.