Ok, this is my first post and somone probably already covered this… but here it goes… Thanks for ANY help in advanced.
I am in the process of purchasing raw land in California to fix up, add a home, etc etc… A friend of mine is a loan officer and he informed me that banks only loan up to 65% sometime 85% on raw land. Now the owner is willing to carry whatever is left over after getting a loan. My question is: Is it a good idea/legal to have the owner carry 50% and get a loan for 65% or more therefore having a surplus of funds to be able to do improvements to the land?
I am still trying to get a grasp on this whole financing and how the process works. Ive been reading these forums for sometime now and I appreciate any of your wise advice.
It would be a loan based off the total cost of you’re project as opposed to a loan based off just a raw piece of land. I don’t have enough detail though. Im not sure if this is for investment purposes and how you’re financials are…