Results 1 to 6 of 6
-
09-01-2021, 06:12 PM #1
- Join Date
- Apr 2019
- Posts
- 41
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
-
09-01-2021, 07:27 PM #2
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
-
09-02-2021, 08:11 AM #3
- 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
-
09-02-2021, 01:52 PM #4
- Join Date
- Aug 2021
- Posts
- 69
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
-
09-02-2021, 02:02 PM #5
- Join Date
- Feb 2017
- Posts
- 3,354
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.
-
09-07-2021, 04:53 PM #6
- Join Date
- Aug 2021
- Posts
- 69
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
Similar Threads
-
Recent Transaction - $18MM land purchase
By CHAMP3 in forum All Other LendingReplies: 1Last Post: 11-26-2019, 10:16 AM -
any RE lenders lend for purchase of land?
By Sachip24 in forum All Other LendingReplies: 0Last Post: 05-24-2018, 01:43 PM -
Group Homes
By vktaylor in forum Everything elseReplies: 1Last Post: 06-02-2016, 02:23 PM -
fraud: L.T. Homes
By RogueCaliISO in forum Merchant Cash AdvanceReplies: 12Last Post: 03-14-2016, 03:51 PM