Hard Money Lender Residential Lot Package Colorado?

Question

Hi,

I am just doing some initial work up front here, but I might have a deal for a bundle of 5 to 10 lots in an existing residential subdivision in Colorado near a ski area.  Lots are selling for around $30,000.

Does someone know of a hard money lender willing to lend short term (2 or 3 years) on a bundle of residential lots like this?  If so, what sort of terms would I be looking at?

Thanks in advance!

Scott Miller · Answer

It's difficult for me to respond with a great deal of accuracy because the HM lender sets the terms depending on the specifics of the deal.

To give you a point of reference, here is a raw land deal that I financed in TX that might give you some insight:

- Raw Land not yet zoned/plated (45 acres)
- Loan amount 506K (less a 75K holdback for entitlement)
- 70 loan to value
- 13% + 5 points
- 1 year payback with interest only payments

Hope you can gleem some benefit...

Regards,

Scott Miller

Scott Miller · Answer

I could possibly assist you on this matter---LTVs will range from 65-70 LTV on either raw land, residential or commercial zoned land ranging from 2500 sq ft up to 5K acres.

Regards,

Scott Miller

Paul Ritkouski · Answer

Jon and Scott,

Thanks for the replies!  Maybe I can ask a follow up?

Could either of you speculate on the interest rate (a range is fine) that a hard money lender would charge on a loan of this type?  I have a 786 credit score and 100% secure job for the next 3 1/2 years.

Sounds like most hard money loans include "points" or similar "kicker" or "fee" of some type at the end of the loan?

To realize the potential of these lots, I would need to do some work with the county, which will take time.  Sounds like the longest time horizon I could expect for a hard money loan is 2 years?

Is there a "hard money loan primer" somewhere on the site that I missed?  I would be happy to go read it if I am wasting time with questions that are covered elsewhere.

Thanks again!

Jon Holdman · Answer

Sent you a PM.

Jon