Funding for land development

[Chris Walsh]

We have a seller financing deal on 55 acres of raw land.  Needs wetlands and soil samples. rezoning ( what’s the zoning board basically told us it’s a done deal they’re looking for development).  We may eventually have to hire an engineer, but probably sell it to a builder before that happens. Exit is flip to a builder.  We have the builder ready to go. 

Who has experience with borrowing the down payment, carrying costs and fees to keep the project moving.  Interested to hear how people have structured it.  Owner is holding 70% of the purchase.  thanks 

[Chris Seveney]

Quote from @Chris Walsh:

We have a seller financing deal on 55 acres of raw land.  Needs wetlands and soil samples. rezoning ( what’s the zoning board basically told us it’s a done deal they’re looking for development).  We may eventually have to hire an engineer, but probably sell it to a builder before that happens. Exit is flip to a builder.  We have the builder ready to go. 

Who has experience with borrowing the down payment, carrying costs and fees to keep the project moving.  Interested to hear how people have structured it.  Owner is holding 70% of the purchase.  thanks 

 Typically its an equity partnership. We have done this in the past but the interest rate is going to be above credit card interest rates.