[Fundyman]

Need line of credit for A paper client with no debt. Looking for fair rate, between 5-7%, no higher, with decent repayment terms. Looking to use the land as guarantee (NOT WILLING TO SIGN PG), however, willing to do a Deed in Lieu of Foreclosure without possible dispute.

The appraised value of the land for $4MM was pre-development, so that is just a conservative value, as it should come in higher, since development is complete in that area now.

Direct lenders, please PM or email: solidmerchantsolutions@yahoo.com

[bdshaw]

I would 'll like to know if you are successful getting that loan structured.
I have never seen a deal at those rates and that collateral with no P G that would be in the single digit range. I think your client is bring unreasonable.
Bob Shaw

[Fundyman]

possibly, Bob. However, those are just the ideal terms they are requesting. If a lender is willing to match the term requests, then we have a perfect deal. Whether or not those terms are feasible, I have yet to find out, as I am truly inexperienced in that area of financing.

[Miller192]

For land deals a lender is going to value the land at 50% of the appraised value. They are also likely to lend up to 60% of that value. However, without a PG you don't have a deal unless there is an assumption of development rights.

We try and stay away from land deals. Land is meant to be sold and developed and not used as loan collateral.