Hard Money Lender for Agriculture Land

Honolulu, Hawaii
Buying & Selling Real Estate
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Hard Money Lender for Agriculture Land

Chad Otsuji
Severn, MD · Member since 2020 · 14 posts · 1 vote

Hello everybody!

I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

I have anywhere from 20%-25% to use as a downpayment.

I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

If your company does these loans, or if you know of anyone who can do these loans please reach out!

Thanks,

Chad Otsuji

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Chad Otsuji:
Quote from @Chris Seveney:
Quote from @Chad Otsuji:

Hello everybody!

I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

I have anywhere from 20%-25% to use as a downpayment.

I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

If your company does these loans, or if you know of anyone who can do these loans please reach out!

Thanks,

Chad Otsuji


 If you need to close in two weeks a local mortgage company is probably out of the running. Just be aware this money will not be cheap for this deal, could be as much as 20% or greater. 

How much is the loan amount you are looking for? Do you have the appraisal done? Do you have title company selected and title cleared?

We expect high interest, but 20%+ seems very high. Would it still be this high with my 2 properties as collateral? 

Seller is asking 260k. We have about $50k. Loan amount of $210k 

Title company is selected. No appraisal or clear title yet. 

The owner said we can have an extension, if it’s within good reason. So 3-4week closing may be possible. We just need to make sure the lender can do the loan without the tax map key 


google HML  Honolulu there is a pretty big HML in that city I suspect they could do this without much problem.. U can ping me I have a friend their in Honolulu that may look at this as well. 
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  • Loren Clive
    Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes
    1y

    I have a couple contacts. DM me

    You should ask a local mortgage broker also

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Chad Otsuji:

    Hello everybody!

    I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

    This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

    There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

    The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

    The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

    Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

    I have anywhere from 20%-25% to use as a downpayment.

    I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

    My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

    I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

    If your company does these loans, or if you know of anyone who can do these loans please reach out!

    Thanks,

    Chad Otsuji


     If you need to close in two weeks a local mortgage company is probably out of the running. Just be aware this money will not be cheap for this deal, could be as much as 20% or greater. 

    How much is the loan amount you are looking for? Do you have the appraisal done? Do you have title company selected and title cleared?

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    0Reply
  • Chad Otsuji
    OP
    Severn, MD · Member since 2020 · 14 posts · 1 vote
    1y
    Quote from @Chris Seveney:
    Quote from @Chad Otsuji:

    Hello everybody!

    I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

    This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

    There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

    The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

    The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

    Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

    I have anywhere from 20%-25% to use as a downpayment.

    I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

    My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

    I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

    If your company does these loans, or if you know of anyone who can do these loans please reach out!

    Thanks,

    Chad Otsuji


     If you need to close in two weeks a local mortgage company is probably out of the running. Just be aware this money will not be cheap for this deal, could be as much as 20% or greater. 

    How much is the loan amount you are looking for? Do you have the appraisal done? Do you have title company selected and title cleared?

    We expect high interest, but 20%+ seems very high. Would it still be this high with my 2 properties as collateral? 

    Seller is asking 260k. We have about $50k. Loan amount of $210k 

    Title company is selected. No appraisal or clear title yet. 

    The owner said we can have an extension, if it’s within good reason. So 3-4week closing may be possible. We just need to make sure the lender can do the loan without the tax map key 

    0Reply
  • Loren Clive
    Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes
    1y


    @Chris Seveney I meant local mortgage brokers often have hard money lender contacts and facilitate these types of transactions. I lend hard money, and that's where I get most of my deals from.

    OP, how are you going to record a mortgage against the property if there's no TMK? I'm assuming at this price you are buying one of the 2-acre parcels where the subdivision is not yet complete. Not sure if this is legally feasible

    Can you record a mortgage against the entire parcel??

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y
    Quote from @Chad Otsuji:
    Quote from @Chris Seveney:
    Quote from @Chad Otsuji:

    Hello everybody!

    I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

    This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

    There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

    The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

    The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

    Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

    I have anywhere from 20%-25% to use as a downpayment.

    I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

    My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

    I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

    If your company does these loans, or if you know of anyone who can do these loans please reach out!

    Thanks,

    Chad Otsuji


     If you need to close in two weeks a local mortgage company is probably out of the running. Just be aware this money will not be cheap for this deal, could be as much as 20% or greater. 

    How much is the loan amount you are looking for? Do you have the appraisal done? Do you have title company selected and title cleared?

    We expect high interest, but 20%+ seems very high. Would it still be this high with my 2 properties as collateral? 

    Seller is asking 260k. We have about $50k. Loan amount of $210k 

    Title company is selected. No appraisal or clear title yet. 

    The owner said we can have an extension, if it’s within good reason. So 3-4week closing may be possible. We just need to make sure the lender can do the loan without the tax map key 


    google HML  Honolulu there is a pretty big HML in that city I suspect they could do this without much problem.. U can ping me I have a friend their in Honolulu that may look at this as well. 
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Chad Otsuji:
    Quote from @Chris Seveney:
    Quote from @Chad Otsuji:

    Hello everybody!

    I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

    This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

    There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

    The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

    The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

    Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

    I have anywhere from 20%-25% to use as a downpayment.

    I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

    My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

    I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

    If your company does these loans, or if you know of anyone who can do these loans please reach out!

    Thanks,

    Chad Otsuji


     If you need to close in two weeks a local mortgage company is probably out of the running. Just be aware this money will not be cheap for this deal, could be as much as 20% or greater. 

    How much is the loan amount you are looking for? Do you have the appraisal done? Do you have title company selected and title cleared?

    We expect high interest, but 20%+ seems very high. Would it still be this high with my 2 properties as collateral? 

    Seller is asking 260k. We have about $50k. Loan amount of $210k 

    Title company is selected. No appraisal or clear title yet. 

    The owner said we can have an extension, if it’s within good reason. So 3-4week closing may be possible. We just need to make sure the lender can do the loan without the tax map key 

     really depends on the lender, a direct lender who uses their own money may come down but a hard money company with 20% down on land even with other collateral may not want the deal. Land is very risky, and being in hawaii makes it even more challenging - thus reason we see higher rates on land. could it be less, yes, it could be in the 15% range but i would be shocked if someone would be in the 10-13% range.

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