Can't get a loan on a particular property - what to do?

3 Replies

Hello all,

I'm trying to get a loan on a property listed at $810,000. I have the cash to make the purchase, however it would put a very significant dent in my bank account.

I have one lender that makes their loan calculations based purely on rental income minus expenses. This one generates a very low return so I can't work with them. I'm not buying it for the return, I'm buying it for land value appreciation and also the zoning to redevelop it in maybe 10-15 years (Or longer - I'm in no rush) down the line.

Another lender bases their loans off of income/assets. I'm good in that regard, but now I just found out they don't give loans on parcels of land that contain multiple buildings. This property has two separate (Unattached) living units on it with two separate electrical meters - but they both have the same address. 

In spite of the low return, I am very very sure that this property is a great return in the long run and massive development potential either for myself or to sell to someone else (Up to 20 units can be built on the land. Similar to buying in San Francisco or a gentrifying area. 

Is there any way to get this done? 

Maybe as an owner occupant? Buy with cash and then? (No idea what I would do after).

Buy the property, split the buildings/land into separate lots and survey them. Sell off one of them or refinance them individually.

Yeah, try more banks...
And, the owner occupy method may work. That should get you a better interest rate too.
I wouldn't recommend slapping all your cash down on this and banking on some appreciation. (Although, heck, I've heard Austin is the place to be! Sounds like you know what's hot over there.)
Perhaps the owner can finance a bit as well with some portion of money down?

@Chris Krinslow

If the property is in Texas, I have some lender contacts I can pass along. Feel free to send me an email with details at the address below.

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