Posted by GMann on May 08, 2006 at 10:08:43:
I have a few hard money lenders that would be interested in this deal. Just an upfront…it’s going to be a very expensive loan because it’s small balance and raw land.
The zoning and entitlements will be an important factor in the loan.
land for sale 80% equity - Posted by ed
Posted by ed on May 03, 2006 at 16:14:16:
Hello, my question is getting financing for a piece of land. over 75 acres. It was a farm years ago but the only house burned long ago - only a foundation and well left. We can pick this up for $1000 per acre (its over 75 acres) and have been given appraisal prices of between 7-10k with a quick sale possible at 5k. Looking for financing ideas for it. It is less than 1/2 mile from all 3 of the county schools, (hs just opened in Sept 05), backs up to the country club/golf course, is 2+/- miles from the county seat,hospitals and town with stores and less than a mile from the airport, has a state university also less than 3 miles from it. It lays flat and has almost 3/4 mile road frontage. WIth all these amenities not including 30 miles to over 6 larger cities - we are looking for ideas how to pay for it. We have no money and have done 3 no money down deals and have land, but again, no money. It is in middle georgia.
thanks for any suggestions, ed
Re: land for sale 80% equity - Posted by ray@lcorn
Posted by ray@lcorn on May 03, 2006 at 18:58:23:
ed,
Something is wrong here… it sounds like either you’ve found a seller who doesn’t have a clue about value, or you’re holding a gun to his head. But then again, I don’t have the whole picture.
I’d check out the zoning, infrastructure availability, development standards, etc. to make sure you can do whatever it is you want to do with the land. Sometimes there are nasty zoning requirements that make development very expensive. Make sure this isn’t one of them. I’d also pull a title report, check liens and ownership, and make sure you’re getting clear title. You may or may not need a survey. You’ll definitely need a Phase 1 environmental report.
I’d use an option to control the property while checking all the above out. Try to buy at least six months (with a renewal privision) as cheap as you can get it… start at $1000 and go up slowly.
If it does check out, then you could just sell the option for $5T-$10T per acre; or use the time to find a private lender, a bank line of credit based on your other properties, or a partner. The option buys time to put it together.
ray
Re: land for sale 80% equity - Posted by ed
Posted by ed on May 03, 2006 at 19:16:30:
Hi Ray,
its actually a family farm and my relatives have NO clue as to value. They all live out of state. I got them almost $50k for the timber alone - but they want cash now for the land and no financing - I have continued this contract for a while. There is no zoning issue - we can even be the only parcel able to hook up to sewer from the high school, I just need to figure out how to finance it before they wake up and realize how cheap they are selling it.