why do you care if its a private lender? you just need the funds right? if you are willing to pay high interest rates you can get the funds even with so so credit. you are going to flip the property and pay the loan back in the short term anyway so you shouldnt worry too much about the interest cause it wont have time to collect. you just dont want any prepayment penalty on you loan.
There is lots of hard money available out there. For starters try the classified section of your local newspaper. There is usually a "money to lend" catagory in or around the real estate section. Here in TCI you can click on "lenders" and scroll down. There are some options there too. Good luck.
Thanks for the www.input.I just heard that alot of lenders are putting a pre payment on alot of www.loans.They did on the house i'm in now.(it was a foreclosure)
Besides,i was thinking about maybe trying to buy some pre foreclosures,but i hear you need cash,and quick.
If i were you i would continue talk with the invester that made you that offer. Just because he has some out doesn mean hes going to use them. He is just protecting himself. But he wants the property or he wouldnt have offered. His offer is 150k better than the as is offer. Talk to him, be his pal and speed this up so you can move on to other investments with your cash. I doubt anyone wants to lease it because its hardly livable. Dont finish the rehab because its best as a scrape on that large lot thats why this developer has made his offer. he will buy it if you encourage him. Other ideas: dont waitfor a buyer to come along go find some. Call some builders etc and start the bidding, hire an auction company and auction her off. be proactive and activity will follow. you hold the cards
You know, I think you might get more and/or better advice in the Developing forum on the TCI Commercial site (click red tab at top of page).
That said I would wander down to the zoning board and see how they feel about the .5 acre lot subdivision. If you can I susupect that the best money with the least work is to get approval for the subdivision and then sell the land with that approval in place.
You could have ( and probably still can) counter the developers offer. Talk to the agent representing you. If it were me, I'd counter the developers offer at $600K (for the extra trouble of his contingencies), and add a continued marketing clause with a 72 hour bump. the counter offer would state that you have the right to continue marketing your home and to accept another offer if it comes along. If you do accept another offer the developer would have 72 hours to remove all of his contingencies and set a closing date. Talk to your agent about this. It's done all the time. That way you have an offer but you are not locked into it if something else comes along.
I talked to the developer that made the original offer today. I was really amazed at how easy going he was and willing to work with me. He seemed very willing to lease the property from me during the contingency period if I would credit the lease payments back against the purchase price.
The contingencies include preliminary title report approval; approval of surveys & engineering incl. soil, hydrology, floodplain studies,utilities and financial feasiblity study; approval of property appraisal; and receiving public approvals for planing, zoning, and engineering plans including a tentative map.
It also states that I have to sign applications to all local entities for appropriate permits, plans, etc.
These look like they are probably standard type contingencies, but I am confuses about 2 of them.
---Financial Feasability Study: What exactly is this? It would seem to me that they should already have done some sort of financial feasability study to determine if offering on the property even made sense.
---Approval of appraisal: Why would this be important to the developer if he's gonna demo the home anyway?
I really like the continued marketing clause! Thanks for the heads up on that Sandbahr.
As CommercialKing stated, I'm going to repost in the commercial forums for continued discussion on developing the property as a 3 lot subdivision or similar.
I'm going to repost in the appropriate forum as CommercialKing reccommended.
why do you care if its a private lender? you just need the funds right? if you are willing to pay high interest rates you can get the funds even with so so credit. you are going to flip the property and pay the loan back in the short term anyway so you shouldnt worry too much about the interest cause it wont have time to collect. you just dont want any prepayment penalty on you loan.
There is lots of hard money available out there. For starters try the classified section of your local newspaper. There is usually a "money to lend" catagory in or around the real estate section. Here in TCI you can click on "lenders" and scroll down. There are some options there too. Good luck.
Thanks for the www.input.I just heard that alot of lenders are putting a pre payment on alot of www.loans.They did on the house i'm in now.(it was a foreclosure)
Besides,i was thinking about maybe trying to buy some pre foreclosures,but i hear you need cash,and quick.
if you can, split the lot into 3 and build on all three.
If i were you i would continue talk with the invester that made you that offer. Just because he has some out doesn mean hes going to use them. He is just protecting himself. But he wants the property or he wouldnt have offered. His offer is 150k better than the as is offer. Talk to him, be his pal and speed this up so you can move on to other investments with your cash. I doubt anyone wants to lease it because its hardly livable. Dont finish the rehab because its best as a scrape on that large lot thats why this developer has made his offer. he will buy it if you encourage him. Other ideas: dont waitfor a buyer to come along go find some. Call some builders etc and start the bidding, hire an auction company and auction her off. be proactive and activity will follow. you hold the cards
You know, I think you might get more and/or better advice in the Developing forum on the TCI Commercial site (click red tab at top of page).
That said I would wander down to the zoning board and see how they feel about the .5 acre lot subdivision. If you can I susupect that the best money with the least work is to get approval for the subdivision and then sell the land with that approval in place.
You could have ( and probably still can) counter the developers offer. Talk to the agent representing you. If it were me, I'd counter the developers offer at $600K (for the extra trouble of his contingencies), and add a continued marketing clause with a 72 hour bump. the counter offer would state that you have the right to continue marketing your home and to accept another offer if it comes along. If you do accept another offer the developer would have 72 hours to remove all of his contingencies and set a closing date. Talk to your agent about this. It's done all the time. That way you have an offer but you are not locked into it if something else comes along.
Thanks for the advice.
I talked to the developer that made the original offer today. I was really amazed at how easy going he was and willing to work with me. He seemed very willing to lease the property from me during the contingency period if I would credit the lease payments back against the purchase price.
The contingencies include preliminary title report approval; approval of surveys & engineering incl. soil, hydrology, floodplain studies,utilities and financial feasiblity study; approval of property appraisal; and receiving public approvals for planing, zoning, and engineering plans including a tentative map.
It also states that I have to sign applications to all local entities for appropriate permits, plans, etc.
These look like they are probably standard type contingencies, but I am confuses about 2 of them.
---Financial Feasability Study: What exactly is this? It would seem to me that they should already have done some sort of financial feasability study to determine if offering on the property even made sense.
---Approval of appraisal: Why would this be important to the developer if he's gonna demo the home anyway?
I really like the continued marketing clause! Thanks for the heads up on that Sandbahr.
As CommercialKing stated, I'm going to repost in the commercial forums for continued discussion on developing the property as a 3 lot subdivision or similar.
I'm going to repost in the appropriate forum as CommercialKing reccommended.