I just found this website…it’s great. So much good advice.:slight_smile:

Here’s my situation…
I am looking to do a small land acquisition & development project:

Sales price: $3m
6 acres
13 sfr lots
Already zoned!!
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

Land: 3,000,000
Improvements: 650,000
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.
Please help.

see if the seller would be willing to carry $X for a short period of time.


It sounds like you may have need for a private investor to work with you. I may have someone in mind. but, here is an important question: do you have a seasoned team of individuals working with you on this project? Do THEY have experience? You can be the developer (the one putting in the money and financing the deal) with no experience, but your team (architect, engineer, marketing person, project manager, etc.,.) needs to be experienced in like projects. You are going to be hard-pressed finding someone working with you if you are new. I hope this helps.

Thank you for such a quick response.

Yes. We team is very experienced in these kind of projects.

With a private investor, what would the typical terms look like?

Do you think it would be easier to find hml for say $600k then personal loans for the rest? Spread the risk a bit??

Any referrals would definitely be appreciated. Again, I really appreciate your thoughts and input.


That all depends on how much he/she would have to bring and how fast.

I do not think HM should be an option just yet. You should probably prepare to get you line of credit available. if you want an investor to put in the whole 1.2mill to make this deal work, you are looking at giving up 40-60% of the profits.


You may be able to qualify for

They are expensive and tough hard money for commercial projects. Watch your a$$ with these guys.

I agree about Kennedy. No one should EVER use them unless they have a ton of $$$ for fees and NO OTHER CHOICE. They can do the impossible, but it will COST you.

You guys are great. It is so helpful to get different perspectives on this.
I know we can make this work; it’s just a matter of putting the pieces together. Right?

We could bring in a few 2-300k personally and probably a couple more 100k in loans from friends…

What do you think would be a good source for the rest?

Any good ways to structure this?
How about 2.2 from bank, 800k-1mm from hml, 400-6k from us? Like a 65/25/10?
What other sources might be out there?
What are chances of finding a higher LTV loan for the 1st? Is 65% typical?

Thanks again your input is priceless!

banks will only go 50-60% ltv for land loans generally. The fact that you have got 65% is very good.

see if you can have the seller finance you until you seperate the pins. At this point the land will be worth alot more and you can get all the money you need from the bank.


if you can support the debt with your income (full doc) you may be able to find something as high at 85%-90% CLTV w/2 loans.

Can you fully support the debt on your own income? When do you absolutely HAVE to put down the 1.2mill?