Using land as a down payment? - Posted by RR

Posted by george on April 29, 2007 at 22:29:59:

You can use anything the seller will accept – land, boat, cars, sex, etc – anything!

Using land as a down payment? - Posted by RR

Posted by RR on April 29, 2007 at 20:23:06:

Is it possible to use a piece of land that has been paid off as down payment for a construction of an eight-plex?
I do have good credit and would cost me around 450k to build it and I would like to use my piece of property as a downpayment.

Re: Using land as a down payment? - Posted by David Krulac

Posted by David Krulac on April 30, 2007 at 06:33:48:

if you mean to build the 8 plex on the land in question yes. I’ve found best results in cases like this using local brick and mortar banks as the lender.

Re: Using land as a down payment? - Posted by Ed in Idaho

Posted by Ed in Idaho on April 29, 2007 at 23:39:38:

If you mean to use the land as your part of a construction loan to build the 8-plex on, it is possible if the land is valued high enough to satisfy whatever lender you will use. Is this what you are asking? If you are building you will be going after a construction loan, then after you have built and gotten the occupancy permit, you get turned over into a regular mortgage. It is different with every lender (hard and soft money), but they want to see that you have something at stake so you will follow thru on what you want to do or they will be covered if you don’t. If this is your route, it doesn’t cost anything to ask questions at banks, then mortgage brokers who have access to hard money. Maybe partner up with someone. I just built a house using my free and clear lot as my part of the loan. Mortgage broker got me semi-hard to do it but really I could have used the bank because I have good credit and I have other lots to use as collateral if I needed them, but I didn’t. The name of the game you are trying to play is “What is your collateral?”.