Hello everyone!
I have been speaking with a builder in Austin who owns a property and wants to sell it fast for cash. He’s posted it on investor forum, but will put up for MLS sale next week unless I can get qualified quickly.
Specs:
Purchase price $190,000
2 small city lots in town (total .26 acre)
each lot has double wide mobile home on it (rent for around $1000 each)
zoned commercial, mixed use with residential around it
planning dept says condos ok, but not confirmed 3 or 4 units yet (have to work with engineer to lay things out after deal’s put together)
What I need help with…raising money:
seller doesn’t want to do any financing and wants cash in 30 days - period.
Need lender (and possible investors) who work in TX who can do short term financing on properties. I think hard money at 5pts and 15% interest will make too costly unless I have investor with deep pockets.
If I can get decent carring costs for properties for next 6 - 9 months while I go through planning dept approvals, I can get refinanced with construction loans after City approves, then build and sell condos at around $325,000+ each (3 or 4 units). Great potential for profits down the road.
Alternative #2 is sell off project to another builder at approval stage or after permits are approved and let someone else build out.
I would appreciate all suggestions and help with the “what I don’t see” in this project…risks, upsides, opportunities, pitfalls.
Thanks!