Eric Scharaga
Founder, Damen Capital Fund
Private lender and direct land note buyer serving land investors nationwide. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →
Offer seller financing, sell at full price, then sell the note to Damen Capital Fund at closing. You keep 100% of the down payment plus 80-90% of the note balance, in cash, at the closing table. We handle all paperwork and take on all default risk.
Properties advertised with "OWNER WILL FINANCE" sell 2 to 3 times faster and at list price, while cash buyers expect a 10%+ discount. Seller financing gets you a better price and a faster sale. The catch used to be waiting years for payments. Not anymore.
Example: $100K sale price with $20K down
$20K down + $64K note sale = $84K total cash at closing
Higher down payment = higher payout. Notes with 30%+ down can price at 90%+.
You keep 100% of the buyer's down payment plus 80-90% of the note balance. I generate all loan documents, buy your note at closing, and take on all default risk. If the buyer ever stops paying, that is my problem, not yours.
Screen buyers with two questions: Do you have 20% down? How is your credit?
| Buyer Credit | Required Down |
|---|---|
| 690+ | 20% down |
| 630-689 | 30% down |
| 601-629 | 40% down |
| Below 600 | 50% down |
Skip the credit check entirely with 50% down or a buyback guarantee. All credit scores accepted.
Advertise owner financing, negotiate price and down payment with your buyer.
Or pull it yourself. Either works. Then I bid your note.
Loan docs, transfer docs, title company coordination. All handled.
Down payment plus note proceeds, cash at closing. Buyer fees ($500 loan fee, $25/month servicing) are built into your profit. No prepayment penalty.
Most rural and residential land over 2 acres with a minimum value of $50,000 qualifies. Promissory notes only, with the deed transferring to the buyer at closing. Not land contracts. A PERC test is required for parcels under 10 acres without public sewer.
Properties without legal and physical access. Steep slopes, unusual topography, irregular shapes. Substantial wetlands or flood zones. Failed PERC tests or land that cannot be developed. Infill lots unless zoned for mobile homes. Desert, industrial, and commercial properties. Inflated sale prices, since I run my own valuation on every deal.
No. Reviewing properties up front takes a lot of time, and most never turn into a deal. You market the property, negotiate the buyer, then send it to me for a bid.
You do. You know your buyer and your property best. You work out the sales price, down payment, and terms, then bring me the deal.
Once you have negotiated the best deal you can. I will send you a short form to fill out, and I will give you a bid on the note.
If the property is under 10 acres and does not have public sewer, yes.
You can pull the buyer's credit yourself, or Eric can run it after you accept the bid. Either way works.
No. I run my own valuation before I buy the note, and I pay based on the property's true market value. Inflating the price will not get you more.
I do. I handle all loan and transfer documents and coordinate directly with the title company. You do not deal with the paperwork.
These are complicated and we generally avoid them. We only consider it if you have the funds to close the A-B transaction yourself.
Market your property. Negotiate the best terms you can, with the highest down payment possible. Fill out the bid form. Approve the offer and terms sheet. Introduce Eric to the title agent as the note buyer.
Yours. As the property owner, you are the one financing the property. I buy the loan from you, and it is assigned to me. Once assigned, collections and default risk are mine.
Once I buy the loan, any default is 100% my problem, not yours. You keep the cash you already collected and walk away clean.
Over 150 notes purchased. Negotiate your deal, then bring it to me for a bid.
Private lender and direct land note buyer serving land investors nationwide. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →