Randy excellent advice. List price is 2.9M believe owner will accept $2.750-$2.8 I can realistically afford $500K down in cash (after sale of my current home) and I can realistically finance another $500 to $600, therefore 1/3 of total deal. My credit is outstanding. I ran a quick and dirty analysis and if I retain the home and some acreage and sell 3 lots I can turn profit of at least $250K. If owner is not willing to do a seller financed note what are my options -find investors?
I have an opportunity to purchase 2.5+ acres in a very upscale community close in to Major Metro Area. A very nice 1920’s home is on the property, which I would like to move into. The entire 2.5+ lot is zoned R-2 (2 residences per acre). Market value of .5 acre I’ve determined with comps is $700K. I’d like to move into the current residence, subdivide and sell 3 lots. This subdivision process will take approx 1 year in this county. Problem is the asking price, it’s more than I can swing up front. Any thoughts on creative deal and financing I can propose to the owner to get into the house and then work to subdivide?
Re: Help w/ Land Subdivision Opp. - Posted by Randy (SD)
Posted by Randy (SD) on August 05, 2005 at 10:20:49:
Is the seller willing to sell on terms?
What is their asking price? And how much can you afford in payments?
If you have a motivated seller willing to accept terms, I would propose a seller financed note (Not a Contract for Deed or Land Contract, you won?t get the deed which is needed to sub-divide). The note could be structured with any payment amount you can afford (negative amortizing if necessary) and a 24-month balloon (give yourself enough time).
Be sure to include a ?Partial Release? so sub-divided lots can be sold and include a bonus when each lot is sold (say $10k). So they get their full asking price plus higher than market rates on the note, better than putting the money in the bank and a $30k premium when all 3 lots are sold?
Just one of many way?s this may be done, post more info like the sales price, the pmt you can swing, how much you have for down pmt, how is your credit etc. there may be another way.