I found a very cheap multi unit property. The problem is it is 100 vacant and need repairs all the inside: dry wall, plumbing, appliances, mold etc. Foundation / structure is still good.
I definitely can’t afford paying cash 100%. If there’s a chance a bank/lender want to loan, I would definitely want to investigate this property more. But if this isn’t possible, I’ll move on.
Anybody can refer me a lender might be interested in this?
How many units? 2, 4, 24? is it commercial?
it is actually commercial, 50 units apt. 1-2 bedrooms.
Yes you can borrow money on vacant land. However a 50% LTV is what you can borrow. You have to quality for the loan. Good credit, income stream, cash reserves and meet the banks underwriting debt ratios. Also keep in mind that the bank will take a very conservative approch to the appraised value of the land due to the current Real Estate Market. If you have a cost to rehab and a estimates income stream after the apartments are rented. You may also be able to arrange a refinance of the land loan with the same Bank. This would include the newly rehabed apartment building to long term financing. The cost of the land loan will be of a higher interest rate and short term maybe 5 years. So the Bank would like to get that risker land loan off it’s books. At least that’s the way it works in the great Real Estate waste land of Las Vegas Nevada.