Financing small loan for land - who can help direct me?

Question

I have a couple of clients needing to finance a small lot. These lots are in Montgomery County TX. Anyone know of lenders willing to lend under $70k?

I am currently trying to see if sellers are willing to do owner financing but not many are willing.

Karen Rivera · Answer

Thanks for the info!

Eric Johnson · Answer

credit unions for the small stuff

Matt Devincenzo · Answer

What's the end goal here, and what are the client's credentials? For a small local builder type, I'd suggest getting a local bank/CU relationship going. I'm invested in a new local business bank in San Diego CA, and their whole model is geared around the B2B banking. They want to know and understand your specific business and help you grow...because your growth is their growth. You need to find that same mentality and approach that is local to you.

If they're less of a active local builder, and more of a one off then I'd look for a private lender. That 50-70K loan balance would likely be a nice offer for a smaller balance IRA that wants to get into lending but is still growing. I found as I started lending my IRA that it's hard to do initially because everyone needs more than I had available. So being able to lend say 50K with your buyer putting 20K down, and getting a payoff in 2 years or so once construction is complete would have been a great way to grow that balance.