[GummyBearMafia]

I was wondering if any of you know of any private mortgage lenders or have friends or maybe even you who do private loans. I have a chance to buy a great 400,000 piece of land for 1/3 the price. I am trying to go outside the bank for this one and am looking into maybe a 30yr loan but with balloon because I will have it paid back within a year. Interest only would be my first option but I am open for other ideas. Please any ideas would help I want to offer this house within a week so I need to act fast as I don'[t know how long I can hold off on it. So please message me or email me I can give my number we can talk it over ill give all the info and we can talk everything through and see what we can get moving.

Thanks,
Josh

 

[Spencer]

Land is generally considered the most illiquid and least desirable form of real estate collateral, and hence, is hard to get financing for, especially in this environment.

Any lender (private/hard money or not) will require an appraisal, and most likely only lend 30-40% on value (or purchase price depending on the lender) due to that fact that its land, so expect to come to the table with a significant amount down.

Also, how do you expect to get out of a land deal in less than a year?

 

[GummyBearMafia]

Land is generally considered the most illiquid and least desirable form of real estate collateral, and hence, is hard to get financing for, especially in this environment.

Any lender (private/hard money or not) will require an appraisal, and most likely only lend 30-40% on value (or purchase price depending on the lender) due to that fact that its land, so expect to come to the table with a significant amount down.

Also, how do you expect to get out of a land deal in less than a year?

Its not just land, haha its about 8 acres with 8 buildings on it.

I expect to pay for the rest because in a year i will have the full amount its just as of now i dont want to use my business capital to pay for the house when i can put off for a year.

 

[Christopher]

...

 

[GummyBearMafia]

how exactly do you think you can pay it off in a year, and why would you stay away from banks?

The reason i am staying away from banks is personal discomfort i just simply don't like them. I have amazing credit and the ability to get my loan there but i don't want to. Also since its not a primary location i will have to go before the board and they could take 45 to 60days and when i am trying to close in that time i don't want to wait.

 

[Spencer]

Its not just land, haha its about 8 acres with 8 buildings on it.

I expect to pay for the rest because in a year i will have the full amount its just as of now i dont want to use my business capital to pay for the house when i can put off for a year.

Well, that changes things quite a bit.

Is it residential or commercial? And where it is located?

Hard money is generally going to be 60-65% LTV (or purchase price), 3-6 points, 10-16%, and a 6-36 month balloon on a I/O or 30yr schedule.

 

[GummyBearMafia]

Well, that changes things quite a bit.

Is it residential or commercial? And where it is located?

Hard money is generally going to be 60-65% LTV (or purchase price), 3-6 points, 10-16%, and a 6-36 month balloon on a I/O or 30yr schedule.

Yea haha when i read your response i was wondering but then realized i didnt portray this right. Its a residential, with a 4600sq ft house, a 3400sq ft garage, another 2300 sq ft home, a 3200 sq ft 4 apartment complex, a 2 car detached, 1 car detached, a 2300sq ft shop and a 2650sq ft barn. All with the correct zoning and paper work.

I was thinking 8% and yes 12 months with a balloon.

 

[Spencer]

Yea haha when i read your response i was wondering but then realized i didnt portray this right. Its a residential, with a 4600sq ft house, a 3400sq ft garage, another 2300 sq ft home, a 3200 sq ft 4 apartment complex, a 2 car detached, 1 car detached, a 2300sq ft shop and a 2650sq ft barn. All with the correct zoning and paper work.

I was thinking 8% and yes 12 months with a balloon.

Where is the property located? Hard money lending is generally a local business.

 

[GummyBearMafia]

Upstate New York, its near my family so i have been going back and forth with everything.

 

[TMG]

Upstate New York, its near my family so i have been going back and forth with everything.

I'll send you a PM with some info on a few contacts.

 

[stevefromtheham]

If it is all on one deed it may make it hard for comps. Most hard money lenders right now are wanting you to put skin in the game no matter how good you bought it or what the value is.

 

[nyspeedfreak]

Upstate New York, its near my family so i have been going back and forth with everything.

how far upstate? i might have some contacts for you

 

[ChumpChange]

I was wondering if any of you know of any private mortgage lenders or have friends or maybe even you who do private loans. I have a chance to buy a great 400,000 piece of land for 1/3 the price.

Even if you are buying the property for a deal, you are still going to have to put your own money into the game. As a lender, if I gave you all the money you needed, you could walk at anytime with no loss of capital which would make it a bad investment for any investor.

Hard money is generally going to be 60-65% LTV (or purchase price), 3-6 points, 10-16%, and a 6-36 month balloon on a I/O or 30yr schedule.

This is pretty spot on. We're at 11% on 1st TDs and up to 17% on 2nd TDs and these are all coastal properties in Orange County or LA County, CA with ridiculous equity and properties that any investor would want to foreclose on.

I was thinking 8% and yes 12 months with a balloon.

Rate is pretty low unless you have the seller carry. On seller carry backs, you can negotiate the rate down but at the same time, he will negotiate sales price....kind of like buying a car and needing finance.

For a lender to come in with no ties, there would have to be a better upside such as an equity kicker.

I don't know the NY area so I won't say too much but I have properties with great equity that are easy to liquidate with great upside which although this one might have value to you, I don't see that for an investor who wants an investment return and not a property to sell.

 

[Spencer]

NY is about the worst state to foreclose in next to NJ, so I wouldn't doubt a low volume of collateral based lending. I won't touch NY mortgage deals with a 10ft pole.

 

[GummyBearMafia]

If it is all on one deed it may make it hard for comps. Most hard money lenders right now are wanting you to put skin in the game no matter how good you bought it or what the value is.

Yea i am putting probably $50,000 into it.

how far upstate? i might have some contacts for you

Near the Rochester region, which in the area its in has a very low foreclosure rate this was the only property in the year for this area and only foreclosed because it was attached to a restaurant that failed

Even if you are buying the property for a deal, you are still going to have to put your own money into the game. As a lender, if I gave you all the money you needed, you could walk at anytime with no loss of capital which would make it a bad investment for any investor.

As above ill probably be putting close if not more than $50,000 in.

I don't know the NY area so I won't say too much but I have properties with great equity that are easy to liquidate with great upside which although this one might have value to you, I don't see that for an investor who wants an investment return and not a property to sell.

The upside would be since there is a second home, 3 apartments, a shop and a few other things the ability to rent out in that area would be close to $3000-$4000, so it could become a rental property, or with the zoning be sectioned off.

 

[rtiger29]

curious to know if you were ever able to find a lender? Did you make the purchase?

 

[GummyBearMafia]

I havent yet found one still very interested, i went to my usual guy and he doubled his money in stock so doesnt want anything todo with housing.