Buying commercial vacant land, with no money

Buying commercial vacant land, with no money

Member since 2018 · 3 posts · 0 votes

I have a commercial vacant land property under contract, it’s 120 acre and I am wanting to know the best way to purchase with no out of pocket money up front. I am able to get 50% bridge loan but I am still in need of the other 50%. The total cost is 1.6 millions. The lender that I am communicating with says if I can find the other half of the purchase price, we can get a development loan on the property. 

We are wanting to put a truck stop, drop lot, and truck wash for starters,(phase1)

Then reach out restaurant vendors, like red lobster, smoking bones, Bahama Breeze, Cheese cake factor and so on.

(Phase2)

Add apartments complex gated communitiy 

(Phase3)

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Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
Just personal opinion, but none of those restaurants will want to be next to truck stop, neither will apartment dwellers.
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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y
    Just personal opinion, but none of those restaurants will want to be next to truck stop, neither will apartment dwellers.
  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    8y

    So, just to make sure I have the facts. The 120 acres you are buying, and the phased development plans with truck stop, etc... you have covered all the bases for zoning, permits, environmental assessment, etc.? My experience in developing commercial lots/property is that financing isn't always the biggest piece. In fact, in my world the county UDO and environmental impact studies would be the big issues. 

  • Josh C.Pro Member
    Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
    8y
    You put a 1.6 mil property under contact with no money? They didn’t ask for POF?
  • Member since 2018 · 3 posts · 0 votes
    8y

    preliminary environmental has been done but going forward everything thing looks to be doable. 

    As for POF at first we had a lender who was supposedly able to provide a loan of 2.6 which would have covered purchase price and part of development. But as they say things happen, so I got escrow money out plus the sellers are looking forward to moving on.

  • Rental Property Investor · Chicago, IL · Member since 2018 · 16 posts · 1 vote
    7y
    @Floyd Monroe, I'm looking into truck terminals and was wondering what lender's you contacted that were open to financing the development. Thanks!
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