I'm interested in purchasing several commercial lots near Atlanta, GA, and having a hard time finding banks that do commercial land acquisition financing. I have a partner that will develop the land, and we'll refinance once stabilized. Does anyone know a banker in the Atlanta area that does these types of loans?
Brett let's talk there may be some matches
You're going to want some type of bridge or construction loan.
Offer the seller an owner financing opportunity, if they sell to you 10% on the land value - interest only - with a 2 year balloon payment then you can list the land as equity and get a construction to permanent loan on the property.
@Frank Hinck I reached out to the sellers about seller financing and it's not an option. One has the property in their IRA and just wants to sell it, the other is older and wants the money now, and the last is owned by the county. Not sure if you've been able to work around these hurdles.
@Brett Blalock Bridge and hard money loans.
@Cason Acor Sounds good. I've already reached out to several and a few will finance the land acquisition at either 60% to 65% LTV. The rest want to finance both the acquisition and development.
Yep either pay up with a higher interest loan or pay with your own cash and refi out. Also you could try to bring in cash partners. You have to look at equity raise with paying all cash versus loan and what you give up versus projected upside and see if still worth your time. I won't pay cash for land unless I get it really cheap. That way if national tenants pass I can still make some good money with regional to mom and pop tenants. If you pay up and close and then some tenants pass you thought would like the site you could lose money overpaying. Development is about highest and best use, what passes zoning with site approvals, and getting the tenant and rent you want to pencil the project for profit.