Need help locating funding for this deal
Fellow BP Members,
I need assistance. I have recently been offered a deal that I am having a hard time finding funding to complete it. Let me explain a little and I hope someone has a good solution to help me.
The property that was offered has the potential to be subdivided into 3 conforming lots, minor sub-divisions. There is currently a small ranch on the property, that is maybe worth $400,000; price of the property is $700,000. The seller is requesting that we close by the end of July; this is where my problem is. I typically use a hard money lender to get this done but, in this case, I will not have enough time to obtain the sub-division approvals before July. I’ve asked if the seller would hold a note, which they’ve declined. I’ve requested for an option agreement for a year, which was also declined. If I try to obtain a standard conventional mortgage, it won’t appraise for the value needed to purchase the property during the approval period.
Does anyone have a solution? We have roughly $150,000 in cash available.
Here’s the data behind the deal analysis:
Subdivide and build 3 new construction single family homes; numbers below include all 3 homes.
$700,000 Purchase
$900,000 Building Costs
2.2M Conservative Resale