I just found this website…it’s great. So much good advice.
Here’s my situation…
I am looking to do a small land acquisition & development project:
Sales price: $3m
13 sfr lots
Very desirable location, very limited land available, high growth, views, country club, near ski resorts. Great market.
Cost per lot: 230k
Improvements: 50k per lot
Total Cost: 3,650,000
Retail: $500k per lot (area experiencing around 75% appreciation in land per yr. just FYI)
TOTAL PROFIT: $2,850,000
Bank will give us 60-5%LTV loan, interest included in loan, no payments.
WE NEED the $1.2m down!!!
We have great credit, above 700. My husband has 11 yrs. selling real estate. I have nearly 10 residential mortgage as Mortgage Broker & then wholesale. We both are among the top producers in our fields. Over the years we have helped others inv. and make $, now we want to do this for our selves.
OUR PROBLEM: We don’t have a track record of dev. yet. (have been involved w/others, just not a principal.)
We are pretty conservative; however, this one really makes sense. We live and work in the area and know it well.
OUR ASSETS: We owe $325k on our home valued at $500-525k( we have already been approved for a $150k heloc), SEP act. $65k apx., $100k cash. My husband would also make a $90k commission on the land purchase.
We are willing to pay what ever we need to. We know we have to start somewhere…I hope that I have included all of the relevant info.