RAW LAND LOAN - Posted by daniel

Posted by Michael Morrongiello on November 15, 2001 at 13:32:07:

Land as collateral is at the lower end of the “totem pole” in terms of acceptable and desireable collateral for most lenders… Land also swings wildly in its value or perceived value when the economy is either moving up or down.

Because of this - here is the down side; Often to obtain land loans one must put up 20% -30% or more in cash of the purchase price of the land in order to induce a lender to even consider such a loan.

Here is the up side;
Also because financing is NOT readily available, many land sellers are FORCED (For lack of a better word)to either steeply discount the sales price of their land, so that they can get cash, or to also provide financing for all or a part of the sales price by carrying back “paper”…

These circumstances allow for quite a bit of creativity in structuring land deals where a willing and motivated land seller can sell to you, agree to take back some or all of the financing, and then either retain the “mortgage paper” for the income it produces, or consider selling off some or all of the “paper” so that he/she can meet their cash needs.

Over the years, we’ve worked in this fashion with numerous land sellers and buyers who were wanting to somehow put together a “Deal” where a 30% cash down payment was simply not feasible.

To your success,
Michael Morrongiello

RAW LAND LOAN - Posted by daniel

Posted by daniel on November 15, 2001 at 12:36:09:

Anyone know who does (residental) raw land loans I have excellent credit own nunerous rental properties but can not find anyone willing to do this Any help would be appreciated.

Re: RAW LAND LOAN - Posted by Nate(DC)

Posted by Nate(DC) on November 15, 2001 at 23:20:07:

Dumont Land Finance Corporation
500 N. Akard, Suite 1900
Dallas, Texas 75201


They will finance residential land with 10% down in rural areas only. Don’t know if your land is in a rural area but if so they may be able to help.


there are sources for land loans… - Posted by David Krulac

Posted by David Krulac on November 15, 2001 at 15:11:07:

around here several conventional lenders including banks and credit unions will lend on vacant land. most will lend at standard SFH owner occupant rates with 10%, or 20% down. some require 30%. I have bought and sold 100s of land parcels and have never had a financing problem for either me or my buyers.