Updated almost 9 years ago on .
Need cash fast for an estate sale - property + land!
Today I came upon a property that looks so promising, I'm guessing it might be too good to be true. However, I want to explore financing ASAP while also researching the details to see if it is, in fact, a rare find. The structure, a 2000+ sq.ft. building with city gas, sewer, water (although not currently a residence) is sitting on a 1.1 acre lot in an amazing location for $400K. Background: It was previously listed for nearly 2x this amount but sat on the market for an extended period. The price was cut drastically 2 weeks ago (estate sale, apparently) and after an immediate offer that didn't pan out was just re-listed a week ago. It is zoned multifamily.
It's Friday afternoon at 2:30. I have been made aware that a rehab loan is in the works from another interested party for the property at this time but hasn't been submitted yet.
I currently own 2 properties (one for sale, one soon to be listed) that would yield ~$240K after sale. They are considered a primary and secondary residence.
My thought is to seek a private loan/hard-money loan to bridge the gap between a quick cash purchase (assuming details check out) and the sale of my primary residence (to yield ~$200K) -- at which point I would seek a conventional loan to do some light rehabbing of the existing structure (to make it habitable) and then begin the planning and development for the remainder of the lot -- potentially 4 more SFRs or a handful of duplexes (zoning permits this). Is this called cash-out refinancing? Or I could do a HELOC to free up cash??
How do I do this?? Is there a better way to finance this given that someone may be about to beat me to it?
Yes, of course, due diligence is in order -- how do the numbers look for building on this lot and what sort of returns could be expected given all the costs, etc. That aside, a 2000+ sq ft home on a "normal" size lot in this area would probably cost $350,000 or more. With this property, at more than an acre with multifamily zoning, it almost seems like a no brainer.
My fear is if I don't line up financing ASAP, this deal could be lost.