Hard Money
We have over 1500 raw land acres many with patented mining claims all with pre sec taxes so they are not taxed at full rate however we also have a lis pendens on the property we are trying to resolve the land is valued at several million and the lien is for only 225,000. I need to find an investor willing to loan on the land at an excellent rate of interest to pay off the lien and give us enough funds to start a new business the return to the lender is like I said excellent. How do I go about finding such an investor.
Thanks
Shirley
This sounds less like a RE loan then a business loan secured by RE.
The point is you need a business plan that shows what you are expecting to do, when and how. Then shop it to investors who invest in new businesses.
They do not settle for simple interest and you will definitely be taking on a parter rather then just a lender.
Similar to how funds are raised in Silicon Valley. You sell part of the company and the company's assets are the idea and the land. The land comes with the liens in place.
John
[addsig]
I agree with John. You will definitely need to partner, and you will need a business plan.
You can advertise here in the appropriate areas, but most of the investors here are looking at asset values, not potential business revenue. The amount you would be able to get out of a real estate investor would be the amount of the land value. If that value is the amount you need then you will have a business summary that will get invested in by the investors here. If however you need more monies than that allows you will need to seek venture capitol funds, which will require a different set of investors. Mainly ones that will invest in start up companies and look at potential revenue rather than current value.
Since you are dealing with Mines you will need to show past production rates, if any, and it would be advisable to have the mineral maps overlay, list of existing equipment, resume's of key personnel, etc etc. You will also need appraisal's on each plot or at very least the current tax value and plot numbers associated with them. If the sites have been used before then you will need environmental reports on them to show that all clean up was done after the last person left the site, showing that there is no cost to start work. Concurrently, you will also need to show how you plan to remediate the areas if you are going to be using Cyanide in your extraction methods. Essentially a total layout, costs and time frame.
Given the higher risk of your venture you will have to show at least double he rate of return for the normal real estate investor.
Good Luck,
Kyle