FL A&D Loans for Subdivision

[Jay Strickler]

I have an 8 acre tract of land in the Florida panhandle that I want to develop into a small subdivision.  The lenders that I normally talk to about my rental property don't do A&D loans.  My partner and I need about $1.6MM to complete the build out of roads and infrastructure (engineering is complete).  What kind of options are out there either in banks or with HMLs?  The one quote that we have has exorbitant points and rates involved.

Has anyone had success with this kind of investment that they can share the details of?

Thanks

[Jay Hinrichs]

@Chris Collins  thats one whopper loan for bare un entitled dirt  wow !!  bet that borrower had more than a 700 fico and 30k in the bank LOL

horizontal loans are pretty tough there are a few that will do these..

OP I don't know what you think astronomical rates are . your never going to get bank rates unless you borrow from a bank .. I have one in Oregon that is just under 10 million and typical hard money rates are being quoted.. however frankly if you still cant make nice profit paying for HML or private money then the deal is probably to tight.

if your talking 10 points and 20% then ya that would  be a little bit high.

but 2 to 5 and 10 to 14 is in the all park.. for a HIGH risk horizontal loan.

I just did one personally ( i was the lender) in Orlando and we were up there on the top end of what i am talking bout 30% apr  but the developer snag a great deal and will still make a few million on it while paying me 100k for a 700k loan he used for 7 months.. that seemed fair all around.. I funded in 3 days fyi.. start to finish.. but a known borrower and i am not a bank or lender I am an experienced land developer who happens to also lend money.. so not your typical underwriting scenario.  But he got it done.. I see many folks think becasue they have rentals they should get same rates for these high risk complicated loans.. and never get them done becasue they keep shopping and getting led down the rabbit hole with promises of funding that never arrives.. 

If you have a HML that will go.. just pencil it in as cost to get it done close the loan and move on.

I am not a big player by any means.. but in Oregon I did my banks first horizontal loan since 06 they had a moratorium on doing them.. and so i was proud to be their first even at that i had to have 50% cash equity into the deal.. but I did get bank rate 1 and 6.