Posted by David Krulac on March 25, 2001 at 12:44:16:
ask them the questions yourself. If the answers don’t satisfy you or are too costly to execute, then consider not purchasing the property.
Financing for land purchase? - Posted by Jolene
Posted by Jolene on March 24, 2001 at 13:01:57:
I found a great piece of land at great price close to the heart of Silicon Valley. The house on it was burned down several years ago and there is only a garage (concrete) on it. The owner rents the garage for storage for $780 / month, and would sell the land for $88,000.
I would really like to buy the land and build a house there. However, it is going to take quite some time and money to get the building plan ready and get the permit from the county. However, the rental income will carry me through the process until I start the construction. Is there any financing sources for such a project? The owner is also a real estate agent and stated that it is difficult to finance land purchase, however, he is willing to carry some back. Any advice would be greatly appreciated!
Re: Financing for land purchase? - Posted by Ann (HI)
Posted by Ann (HI) on March 24, 2001 at 21:24:33:
I’ve had good luck recently working with lenders such as Finance Factors and GMAC. Give yourself a long escrow period before closing to allow enough time to get plans and permits, etc. If you are dealing with a RE agent, he knows the score and how long it will take you or anyone else to complete the process.
Re: Financing for land purchase? - Posted by David Krulac
Posted by David Krulac on March 24, 2001 at 14:09:25:
around here, Pa. there are conventional lenders, banks, s&l, credit unions that will lend on raw land at about the same rates as owner occupied home with 10 to 20% down.
I would advise making any contract for this land conditional and contingent upon town approvals to do what you want to do and town issuance of all permits, building, zoning, improvement, and onlot sewage disposal if applicable, as well as driveway, and utiltiy hookup permits. In other words unless you can get EVERY permit required the deal is off; you walk away with your deposit. Maybe if he carries a second for 20% and you get bak financing for 80% convertible to a construction mortgage, you can get in for nothing down. hth
Re: Financing for land purchase? - Posted by Jolene
Posted by Jolene on March 24, 2001 at 23:14:24:
According to the seller, the county requires a design plan before you can apply for the permit. Does that mean that I will have to pay for an architect to draw up a building plan and pay for all the costs to get the permit before I close escrow? Is there any way around that? I have no idea about the process and the costs involved…Any suggestions would be greatly appreciated.
Re: Financing for land purchase? - Posted by Jolene
Posted by Jolene on March 24, 2001 at 23:11:04:
Acording to the seller, the county requires building design plans before you get apply for the permit. Does that mean I will have to pay for an architect to draw up a design plan first? I have no idea how much it will cost to get the prep work done in order to get the permit…Any way around that? Thanks!