[rmckellar]

Have an accountant I am working with who has a client that has a parcel of land worth over $1million. Owner is looking to borrow 625k against the property for a year at 9%.

I dont know anyone who lends at that low of a cost, but I figured I would throw it out there. If you are a funding institution that is interested, please contact me. If you are a broker, please refrain.

[dpFund]

I do a reasonable number of raw land deals through a Commercial RE colleague, but raw land deals are by far the most difficult. :-( LTV is typically lower, fees/points are higher. It will likely be tough to get 9%. Where is the land, what does his credit look like and does he have a recent appraisal?

[rmckellar]

Yeah everyone seems to say that land deals are the hardest and 9% is basically unattainable. I'll just let them know that it's not my forte and pass on it.

[VFG]

Raw land is typically hard to finance and most hard money lenders will finance 40-60% LTV at rates between 10-12% with a couple of discount points.

If your client is that rate sensitive, I wouldn't waste my time.

[dpFund]

Raw land is typically hard to finance and most hard money lenders will finance 40-60% LTV at rates between 10-12% with a couple of discount points.

If your client is that rate sensitive, I wouldn't waste my time.

Yes, raw land is absolutely difficult...though not impossible. It quite often comes down to location. It's easier to get raw land funded in an urban area (or nearby) than it is to get some piece of dry prairie in the middle of Nevada. :-)

If you want me to check, please drop me an email with the property location (address, ideally if you have it) and I will get you some quick feedback as to whether it is a possibility.

Thanks, Dan Page
dan@fundingstrategypartners.com