How to finance 20 acres of land?

How to finance 20 acres of land?

Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes

Hello BP. I’m looking into buying some land but not sure if most lenders even finance land. Any advice on how I should go about this?

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Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
6y

@Rashad S.  As mentioned above, try to work with a local bank for this.  I've done it in the past, about 50% down though.

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  • Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    Most lenders do finance land.  I would just call up a few local banks.  Land is bought and sold all the time, it won't be complicated.

  • Member since 2020 · 122 posts · 62 votes
    6y

    There are a few more questions asked than a normal property purchase but as long as you have answers to those and can meet the financial hurdles you should be fine.  If you do not mind my asking are you targeting this land for self use or are you looking to turn it into a development.  I only ask becuase this may impact the view of the lending institution.

  • Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    6y

    @Rashad S.  As mentioned above, try to work with a local bank for this.  I've done it in the past, about 50% down though.

  • Lender · Member since 2018 · 617 posts · 275 votes
    6y

    @Rashad S.

    What @Tom S. said has echoed my experience - land lenders typically demand that you bring more equity. If on a typical non-land deal you are looking at 20-25% down, 50% is going to be closer to the norm for a land deal.

  • Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
    6y

    @Michael Kinsella

    Ok I see. I will try the local banks then

  • Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
    6y

    @Tom S.

    Ok thanks!

  • Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
    6y

    @Michael Heisterkamp

    Well it’s sort of weird but was looking to build a duplex or a truck lot, or somehow both.

  • Investor · Suwanee, GA · Member since 2013 · 251 posts · 30 votes
    6y

    @Jacob Sampson

    Thanks Jacob

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