Loan against land - Posted by Ron in Austin

import · January 22, 2005, 4:01pm

Posted by dee on January 25, 2005 at 03:15:06:

please email reinfo@mchsi with more specifics.

import · January 22, 2005, 4:01pm

Posted by Ron in Austin on January 22, 2005 at 17:01:31:

Hello,
Question 1:
Can I get a loan against a piece of vacant land that I own that is paid off, zoned commercial, and has for discussion purposes a tax value of $1M and a comparable value of $1M on the market? Using proceeds from the loan I want to buy another piece of property construct a building on the new property.

Question 2:
How much money can I borrow against the vacant land referred to in question 1? There is no income from the $1M piece of land that I own and I do not wish to sell it at this time.

thanks,
Ron in Austin

import · January 30, 2005, 12:19pm

Re: Loan against land - Posted by Ron Sewell, Sr.

Posted by Ron Sewell, Sr. on January 30, 2005 at 13:19:05:

Ray as always gives sound advice.

We are doing a raw land deal in Florida with a 65% LTV in Florida,and we can do them nationwide. On this deal the client is financially sound and has development experience.

Toll Free: 866.296.9351

Best regards,
Ron

import · January 25, 2005, 3:07pm

Re: Loan against land - Posted by ray@lcorn

Posted by ray@lcorn on January 25, 2005 at 16:07:18:

Ron,

Raw land loans are hard to do, and about 50% LTV is the max most banks will even consider. Even then they will be concerned with how you will service the debt. You don’t say if you have any development/construction experience, and that will be a large factor in the lender’s decision. If you don’t have experience, then you may need to bring in an experienced partner.

It may be that you could work out a cross-collateralized loan secured by both properties and advance the funding for the new property purchase and construction funds. You could then retire the debt with a refinance of the new property once complete and stabilized (i.e. producing stable income).

Best bet would be to write a business plan that considers all construction costs, carrying costs and a projection of the time needed to complete the plan, then shop it with the local banks.

ray

import · January 24, 2005, 12:42pm

Re: Loan against land - Posted by Joe

Posted by Joe on January 24, 2005 at 13:42:53:

i might be able to offer you 50%LTV on this cash out financing scenario.
can you give me more details?

email me privately.
discs@bellsouth.net

import · January 23, 2005, 7:53am

Re: Loan against land - Posted by wes

Posted by wes on January 23, 2005 at 08:53:15:

Your best bet would most likely by a small local bank that probably has a better feel for the local value of land.

I would check a few of those before I started looking “abroad”.