I’m finding it rather difficult to find a lender that will loan 200k on land in Nevada with less than 20% down. Also I have no equity in anything else, is there hope for me out there?
My problem is that I found land for 600k and it will sell for 1.2mil and the seller is going to carry back 75%. How can I get the 25% so I can make this huge profit. I really don’t want to lose out on it.
Just curious why you think the land is worth 1.2 million when the seller is trying to get you to buy it for 600k. It can’t be swamp land when it’s in Nevada right?
I have a land agent up there that has checked it out and doesn’t see it being a problem selling for 1.2. The seller is just trying to get rid of it. She just divorced and is aware that there is loads of money to be made but is only interested in 600k and she’s willing to carry 75% of it. I couldn’t believe it. That’s why I’m trying to find someone to help out with the financing.
Sounds like you want a lender to go into second position and give you a 100% CLTV on the loan. Are you putting any skin in the deal? If the numbers are right and you can convince your seller to hold a second position, I have someone in Vegas that may look at it.
For raw land the most you can expect is 50%-60% of the current apparaised value of the land. The lenders are willing to take some risk but not all of the risk.
Patti Porter
Amen Patti. You cannot expect the lender/investor to put up all the initial risk. You must have something in the deal. You may only be asked to pay the closing costs. Which, on something like this, could be about 10-12% of the loan amount.