Developer · Bethel, CT · Member since 2018 · 18 posts · 6 votes
2 years ago my partner and I acquired a 9,000 sqft, two story building, zone for industrial, commercial and residential use. The building is currently vacant and has been for 5 years. We owe about $230K on the note.
Over this timeframe we received approvals to build 14, 1 bedroom apartments, inside. Since this was our first venture, we do not have the liquidity to build it ourselves and are in the process of seeking help from several local developers however with COVID things are taking much longer than normal. The current note holder has reached out to advise that he would like to have his balance settled by or before June 2021.
Outside of selling the project (which would take some time to market) is anyone aware of how we can get a loan for this property? Could we apply to get a vacant land / lot loan? Any guidance would be greatly appreciated.
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
5y
The note is due in June? or he is just calling it? I think you need a new lender based on the commitment of a developer. You should have enough time for that. No money has to be committed, just contracts signed.
Developer · Bethel, CT · Member since 2018 · 18 posts · 6 votes
5y
Hi Ronald,
The language on the contract is that if in 3 years the properties have not yet been satisfied then the lender as the right to foreclose on the current property within 24 hours of the missed June 20, 2021 date.
With respect to the developers, they have not come back with a firm commitment which is why the lenders are unable to provide us a product to move settle the current debt with the seller financed note. We do have value add with the approvals and the lease with the MTA for the sidewalk to increase walkability which is favorable but not enough to secure a loan as-is.
To remove the timeframe of a 5 month deadline, I began thinking outside the box which is why I am seeking guidance on getting a vacant land loan.