Possible to get a loan on Off-grid property?

Mortgage Brokers & Lenders
9moFollow

Possible to get a loan on Off-grid property?

Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

This is a completely Off-Grid house/cabin on 5 acres......built with no permits. Has solar, propane, septic and I am a long-time licensed GC (if that matters?)

Everything is up to code, except the foundation, which is unique.

Any thoughts or ideas appreciated..... :-)

1Reply
164 views

Most Popular Reply

Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
9mo

This property wont fit the securitization model, so whomever lends on it will have to hold the paper. Probably either a private lender who's comfortable with the property as collateral or maybe some kind of agricultural/farm-oriented credit union (not sure where this property is located).

2Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    9mo

    Is the land worth anything close to the asking price? Maybe get a loan for the land value and ask the seller tp\o carry the difference or that could be the downpayment amount? If you can’t get easy financing neither can other buyers, that should help with price negotiations  like non-qualifying condos  

    Any local lenders who have dealt with the situation before? Any neighboring properties you can ask the owners of what they did?

    Use equity in another property you already own?

    Good luck, let us know what ends up working for you. 

    0Reply
    • Bruce WoodruffPro Member
      OP
      Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
      9mo
      Quote from @Bill B.:

      Is the land worth anything close to the asking price? Maybe get a loan for the land value and ask the seller tp\o carry the difference or that could be the downpayment amount? If you can’t get easy financing neither can other buyers, that should help with price negotiations  like non-qualifying condos  

      Any local lenders who have dealt with the situation before? Any neighboring properties you can ask the owners of what they did?

      Use equity in another property you already own?

      Good luck, let us know what ends up working for you. 

      Thanks Bill, and Merry christmas! I should have been more clear, this is a property I already own, and trying to pull a little cash out of it. Land value is probably less than I need.. it's hard to even get an appraiser to go out because of the location.
      1Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    9mo

    Merry Christmas.  

    Is a rental? DSCR?

    Do you need more than 50-60%? (I would assume after all these years you have a good relationship with a banker/lender that would trust you up to a “safe” point?

    Same idea about asking neighbors if they were able to get loans if any similar properties exist. Especially local lenders.  

    Sorry, that’s all I got. Again, Merry Christmas, good luck and LMK if something pans out. 

    1Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    9mo

    This property wont fit the securitization model, so whomever lends on it will have to hold the paper. Probably either a private lender who's comfortable with the property as collateral or maybe some kind of agricultural/farm-oriented credit union (not sure where this property is located).

    2Reply
    • Bruce WoodruffPro Member
      OP
      Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
      9mo
      Quote from @Patrick Roberts:

      This property wont fit the securitization model, so whomever lends on it will have to hold the paper. Probably either a private lender who's comfortable with the property as collateral or maybe some kind of agricultural/farm-oriented credit union (not sure where this property is located).

      Thanks! It's located in the middle of the Sonoran desert (California).   Coolest place on the planet!
      :-)
      0Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      9mo
      Quote from @Patrick Roberts:

      This property wont fit the securitization model, so whomever lends on it will have to hold the paper. Probably either a private lender who's comfortable with the property as collateral or maybe some kind of agricultural/farm-oriented credit union (not sure where this property is located).


      ya this has private lender written all over it..  IMHO
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    9mo
    Quote from @Bruce Woodruff:

    This is a completely Off-Grid house/cabin on 5 acres......built with no permits. Has solar, propane, septic and I am a long-time licensed GC (if that matters?)

    Everything is up to code, except the foundation, which is unique.

    Any thoughts or ideas appreciated..... :-)


     Have you tried a local bank yet?

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    1Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      9mo
      Quote from @Erik Estrada:
      Quote from @Bruce Woodruff:

      This is a completely Off-Grid house/cabin on 5 acres......built with no permits. Has solar, propane, septic and I am a long-time licensed GC (if that matters?)

      Everything is up to code, except the foundation, which is unique.

      Any thoughts or ideas appreciated..... :-)


       Have you tried a local bank yet?


      I could see a local community bank that holds there own paper doing this for a client that has a substantial deposit / or long term relationship with the bank.. Might look at it like a land loan 50% LTV to 70% max.. I am positive I could get my commercial bank to do something like this for me. Its why I only do business ( banking and borrowing ) from my Community bank it has its perks over big banks and other loan companies even though rates are usually a tad higher.
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • Bruce WoodruffPro Member
    OP
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    9mo

    I will ask my local Credit Union.......

    Thanks!

    0Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      9mo
      Quote from @Bruce Woodruff:

      I will ask my local Credit Union.......

      Thanks!


       institutions that serve the community is where its at.  Plus as I mentioned deposit relationships are huge for smaller banks.. put 1 mil in  CD at a local community bank and you will get a loan in 30 seconds :)

      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      0Reply
  • Bruce WoodruffPro Member
    OP
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    9mo

    Thanks Jay! But if I had a million dollars to drop into a CD, we wouldn't be having this conversation, LOL....

    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free