[hardrock]

I have a client who needs a hard money loan or no doc loan to purchase land to build a subdivision.

The land is shovel ready and all infrastructure is complete

The value of the land is $1.5M

The purchase price is $400,000

They're looking for a loan in the amount of $300,000

They will pay it back in 90-120 days

They have $205,000 sitting in escrow

Each home will cost between $250,000 and $265,000 to build and will sell between $550,000 and $650,000.

The escrow company will be able to close within 2 days after the lender's funds are deposited into escrow. Again, the subdivision is completely shovel ready.

After the homes are built the property will be worth $20M

The credit score is between 780-800

Need to close ASAP

[Olderguy]

Land purchasing is typically 50% Loan to Value. You are looking for 75% LTV which isn't likely on land.

financing would be based on purchase price, not value.

One thing I have seen - is have the seller raise the purchase price to get the financing to be 50% of it....and you can figure out the rest.

However, put the package together for horizontal and vertical and you might get financing for both.

Do you have permits, entitlements, final map, final plan?

I could probaby find a lender to do both together.

[omegafund]

State? We just closed a 4M land loan 7 days. This 300k land loan is in the small end but may consider the loan amount and LTV depending on location

Ben Zuniga
Bzuniga@omegafund.com