Posted by Mark Huagsten on August 09, 2005 at 12:36:05:
Tim,
I would not let such a proposal go by in conversation, or on this blog, without throwing in 1 addtional provision.
Unilateral extension by you for 1 year, if funding is not secured by the end of the 2 year term, with payment at time of extension of $500-$1000, and a bump in rate of 3 points for that year.
This gives you an incentive to get your credit score up, and secure financing, while giving you a little leeway if you are close enough to justify, in your view, the additional fees. Investors feel better about your commitment, and the additional year of control you have. 2 years to clear a credit record, while dumping time and money on your ambitious building projects, while working, too, is a bit much to believe, but you can instill confidence with a penalty system for failed deadlines.
Lastly, is this deal the best that can be had in Smithville? The down time of year is approaching, and Smithville is just starting to heat up, so speculation will not going to generate much interest through the slow months, until February. Just mho.
I see no deadlines, or schedule of improvements, and no dollar figures for your monthly carrying cost, and improvement outlays. Comparables on specific local land sales would be good, proximity to state roads would be good, too.
Funding for a 13 Acre Deal !!! - Posted by Tim Sparks
Posted by Tim Sparks on August 09, 2005 at 10:03:15:
I am looking for private funding or hard money on 13 acres and a
double-wide YB 2002,
4bed 2bath, 2080 sq,ft.
I had money in place to close this deal, but because HUD took so long in clearing up the title, the investor pulled her money.
The home is in pristine condition. The numbers are as follows:
Tax Assessed 2004 : $119,000.00
HUD Appraisal: $94,000.00
Loan Amount Needed: $65,000.00
Payoff at the end of 2 years: $80,000.00
The HUD appraisal is only for the house and land. I will be moving
onto the property. I will have to go in on a lease purchase
agreement. I will refinance the home in 1 year or 2 years and put it
in my name unless you are willing to finance this property over a
longer period of time. After i do the additions to the property the
property value will increase tremendously. Additions include: 10x20
wood decks on front and rear, 10’ wide x 200’ long paved drive and
clear under brush on property, and build a 3/4 acre pond.
My credit is bad so i will have to go on a lease purchase agreement,
but the property will pay for itself in value after 1 year. In this
area, raw land sells for 3500-5500 an acre. There are sales in this
area with smaller acreage and smaller and older homes in the range of
$117,000 to $155,000. The home and land are located in Smithville
Texas. This loan CANNOT be based on my credit.
If you are interested please contact me as soon as possible
Live With Desire
Tim Sparks
Sparks Enterprises
Bastrop, Texas
512-321-8094