Land Loans (Paging HLS, et al)

[NotCranky]

Indymac and National city mortgage were doing lots of these. Indymac was taken over by the government. The community banks were willing to do this for me in 2003-20O4 with 15% into the project. I didn’t go that route so don’t know much about the programs. You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. Another way is to have enough money to build and get the owner to carry the land interest only for five years or so, maybe amortized over a longer period but due in five to seven years. A bit of a long shot is to have the owner carry and subordinate to a construction loan.

I am a general contractor besides a realtor.I don’t need much income. Under the right circumstances I would build a house and infrastructure in exchange for a note or percentage ownership in the property.One of the conditions would be that the owner own the property free and clear at the onset, or owe very little on it. Maybe you could find somebody who would do this. Set up a reasonable deal with an option to buy the partial owner out.

[macromaniac]

Lyra,

This arena and the commercial space is now serviced by hard money guys and people with lots of cash.

If you have a project that “makes sense”, I have a group of guys that have a fund with 30 million not to mention their own personal money that may be interested.

If people think residential is crashing hard…wait until you see the commercial market. We are looking at a place right now that is worth 1.8 million and the guy just wants 800K for the note and wants out….

I have friends that are taking down large 80 million dollar notes for 20 million from the banks. It is one thing to write of an equity line, try writing off 60 million against your revenue (if you have any).

We have not seen anything yet…..Westfield props (malls) are open to anything for leasing space right now…they just want people in the spaces….

[macromaniac]

Lyra,

This arena and the commercial space is now serviced by hard money guys and people with lots of cash.

If you have a project that “makes sense”, I have a group of guys that have a fund with 30 million not to mention their own personal money that may be interested.

If people think residential is crashing hard…wait until you see the commercial market. We are looking at a place right now that is worth 1.8 million and the guy just wants 800K for the note and wants out….

I have friends that are taking down large 80 million dollar notes for 20 million from the banks. It is one thing to write of an equity line, try writing off 60 million against your revenue (if you have any).

We have not seen anything yet…..Westfield props (malls) are open to anything for leasing space right now…they just want people in the spaces….

[macromaniac]

Lyra,

This arena and the commercial space is now serviced by hard money guys and people with lots of cash.

If you have a project that “makes sense”, I have a group of guys that have a fund with 30 million not to mention their own personal money that may be interested.

If people think residential is crashing hard…wait until you see the commercial market. We are looking at a place right now that is worth 1.8 million and the guy just wants 800K for the note and wants out….

I have friends that are taking down large 80 million dollar notes for 20 million from the banks. It is one thing to write of an equity line, try writing off 60 million against your revenue (if you have any).

We have not seen anything yet…..Westfield props (malls) are open to anything for leasing space right now…they just want people in the spaces….

[macromaniac]

Lyra,

This arena and the commercial space is now serviced by hard money guys and people with lots of cash.

If you have a project that “makes sense”, I have a group of guys that have a fund with 30 million not to mention their own personal money that may be interested.

If people think residential is crashing hard…wait until you see the commercial market. We are looking at a place right now that is worth 1.8 million and the guy just wants 800K for the note and wants out….

I have friends that are taking down large 80 million dollar notes for 20 million from the banks. It is one thing to write of an equity line, try writing off 60 million against your revenue (if you have any).

We have not seen anything yet…..Westfield props (malls) are open to anything for leasing space right now…they just want people in the spaces….

[macromaniac]

Lyra,

This arena and the commercial space is now serviced by hard money guys and people with lots of cash.

If you have a project that “makes sense”, I have a group of guys that have a fund with 30 million not to mention their own personal money that may be interested.

If people think residential is crashing hard…wait until you see the commercial market. We are looking at a place right now that is worth 1.8 million and the guy just wants 800K for the note and wants out….

I have friends that are taking down large 80 million dollar notes for 20 million from the banks. It is one thing to write of an equity line, try writing off 60 million against your revenue (if you have any).

We have not seen anything yet…..Westfield props (malls) are open to anything for leasing space right now…they just want people in the spaces….

[davelj]

[quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]

1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.

Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.

[davelj]

[quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]

1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.

Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.

[davelj]

[quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]

1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.

Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.

[davelj]

[quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]

1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.

Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.

[davelj]

[quote=Russell] You could call one like 1rst Centennial and see if they still do them.They might send you in the right direction anyway. [/quote]

1st Centennial failed. It was taken over by the FDIC on Jan 23. One of the reasons it failed was their exposure to just this type of loan.

Lots of local banks will make land/construction loans these days. But the terms have tightened up dramatically. Generally it might be 25% loan-to-cost and 50% LTV – WITH a personal guarantee for the entire loan amount AND you must have liquid assets to cover a large chunk of the loan. In other words, loans like these are still made, but only to folks who are only using the bank as convenience – they could almost finance the projects themselves. The loan must appear to be *almost* riskless to the bank.

[Lyra]

Ok, thank you all for the info. I will post if I get any good leads on land/construction loans.

[Lyra]

Ok, thank you all for the info. I will post if I get any good leads on land/construction loans.

[Lyra]

Ok, thank you all for the info. I will post if I get any good leads on land/construction loans.

[Lyra]

Ok, thank you all for the info. I will post if I get any good leads on land/construction loans.

[Author]

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