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  1. #1

    Spec homes and land purchase

    Hi Everyone,

    One of my clients has a construction business which grosses around $1.5-2M a year.
    He's looking to purchase a piece of land that would cost him
    anywhere between $200-300K and getting some additional working capital so that he can build
    his spec homes at a faster rate. Ideally he is looking to borrow $1M. He's been in business for awhile
    and is an established member of his community and has a strong payment history with other open credit lines.

    We've discussed applying for an SBA Express Loan, the SBA
    doesn't allow land purchases so the only way to do this would be to apply for operating working capital
    but those only go all the way up to $350,000..

    What would be other course of financing that we could explore?

    Thanks

    Jean
    Progressive Capital

  2. #2
    Senior Member Reputation points: 4567 NickHubbard's Avatar
    Join Date
    Jun 2015
    Location
    Saint Louis, Mo
    Posts
    326

    Jean,

    Spec home construction & land loan. There are plenty of real estate financing companies that would fund him. But he will need to have some cash down for these type of transactions!
    Nick Hubbard
    Senior Loan Advisor
    314-252-0299 - Office
    314-885-2262 - Direct
    nick@elitefactoring.com
    www.elitefactoring.com

  3. #3
    Senior Member Reputation points: 68233
    Join Date
    Dec 2014
    Location
    Quogue, NY
    Posts
    1,108

    Morning Jean.

    Land Purchasing is speculative. Understanding how to position 'use of funds' is an important part of the process. Is the client profitable? Strong Credit? Several ways to do this- we have 3 or 4 similar files we are assisting now. One of them is a builder that has a bank on a large subdivision- but wants Hard Money to do more homes due to demand.

    Feel free to email me if you would like some help.

    richard@bccusa.com

    https://beforeyouborrow.com/brokers-white-label/

    3237 Route 112 Building 9
    Medford NY 11763
    631-458-0100

  4. #4
    If the client has $50,000+ in personal income over the last two years and 680+ credit score, I would be able to get the client funded up to $400,000. Give me a call.

    Brandon Dressler
    brandon@preferredfundinggroup.com
    8158780244

  5. #5
    Senior Member Reputation points: 216519
    Join Date
    Feb 2017
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    3,334

    Brandon is a big talker, but probably won't be able to do much. You cannot get $400,000 with $50,000 in personal income. And the 680+ FICO is unrealistic, for the unsecured loans you really need a 700 FICO.

  6. #6
    I can get a client approved for funding up to $400,000. I would assume the clients that are needing the funding, pay themselves a decent income based off the revenues they are reporting. Also, if the client has good credit on top of the income, then I would be able to get the client approved for up to $400,000. I apologize Micah but we haven't worked together and wouldn't mind working together before a comment like yours is made to discredit what we do. Obviously in the funding world, especially in the unsecured lending, the higher the credit score and better the income, the client would be able to get more funding than those with lower score and income. Micah if you have clients that would meet these requirements and want to jump on a call to go specifics, I am free tomorrow afternoon and Thursday morning CST.
    JJrouss give me a call today. I can go into the specifics. Thank you

    Brandon Dressler
    brandon@preferredfundinggroup.com
    8158780244

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