I am searching for reputable HMLs, preferrably in TX. The funds are to construct an office complex on a .50 acre of land I own in South TX. The total project costs is about: $ 430,000. I have approx. $ 87K in equity in the land.
I’ve sought funding and spoke/emailed with numerous HML around the country, but have been sorely disappointed to say the least, luckily I did not send any advance funds to any lenders, I have however lost much time in getting this project of the ground.
I would greatly appreciate being pointed in the right direction.
Sorry to hear about your efforts. I’ll email you and we can discuss what measures you’ve taken thus far and with which lenders. I have a pretty extensive list of lenders and TX seems to be one of the states that offers the most options.
In the absense of any details, it’s difficult to determine if the problem is one of the market or your expectations.
If you been having problems finding funding, I’m going to guess you are trying to borrow against future value (and get money for construction & lien payoff on whatever mortage is on the land).
If you are trying to borrow 400K against 87K in equity and nothing else, then you do have a problem—one that will go unsatisfied.
I am attempting to use the equity of $ 87K solely to cover the down payment. I have more than like been forcing a solution for too long. Even a local banker told me that since I was not bringing liquid funds, that he could not assist me.
I now have the property up for sale, and plan to use the liquid funds to invest in pre-existing mutifamily real estate in Central TX, and purchase land and develope it later when I have an established tract record.
Yes sounds like a good plan to sell the land off and then use your liquid funds to invest. Land Equity for downpayment is not gonna fly.
As far as buying land and sitting on it, why not instead just get a land purchase+development loan all in one and just sell off the developed land for a quick profit.