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Adam Reilly
  • Round Rock, TX
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Looking for reputable private or hard lenders for land flips

Adam Reilly
  • Round Rock, TX
Posted Mar 22 2024, 04:46

I've been working on building a land flipping business and currently have about 8 leads in active negotiation and 3 signed purchase agreements, with 1 working through funding. I think that the deals I have on the table and the ones likely to come in this year (I have a very consistent mailing schedule of blind offers), I will need to ramp up the money side, but that has been my biggest struggle so far. I've been going to local meetups looking to find some interested financers, but most or all of them were only interested in house flipping or LTRs. 

I could use some help finding some places or people that would be interested in funding these types of deals.

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Joey Zawacki
Pro Member
  • Investor
  • Macon, Ga
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Joey Zawacki
Pro Member
  • Investor
  • Macon, Ga
Replied Mar 22 2024, 05:11

What’s is your length of term for the loan/s? It is transactional and you already have an end buyer? Are you buying and holding for an extended period of time past 3 months? Past 6 months? What’s your exit strategy and use of the acquisition? These are important to know for a lender, but also for us to advise the best way to raise and seek capital

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Adam Reilly
  • Round Rock, TX
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Adam Reilly
  • Round Rock, TX
Replied Mar 22 2024, 05:23

I'm looking to fund the purchase price and closing costs of both original purchase and sale, with a target of 3 months from acquiring the property to reselling it. All my targeted mailing is for raw land only, so I'm not looking to hold it for longer than it takes to resell unless something wildly enticing comes up. There are opportunities to do some land splitting; if the tract is 20+ acres, I may want to split it into smaller pieces, provided infrastructure is already in place, to increase the value and returns. This would add time to the holding, but would be a case by case issue, since my acreage range has been 5-20 acres for now.

I don't have an end buyer lined up for the properties I'm looking to purchase. I'm doing targeted marketing through fb marketplace, fb groups, mls listings and any other online listing sites, but I can't really market until ownership is in place without stepping into the wholesale ring, and in one of the states I'm working in, there are more regulations about that I would rather avoid.

The funder I'm working with on my first purchase has a contract that I was thinking of re-using, it stipulates that the funder takes  the actual ownership of the land, so that if after one year, they have the right to dispose of the land and keep all profits. Of course, I would rather that not happen but I feel it's fair when they're putting up the capital.

That same contract has a profit split outlined, where if I sell within 30 days of the original purchase closing, it's a 75/25 split, stepping down to a 60/40 within the 30-60 day window, and then to a 50/50 split after 60 days. Of course, this is their contract for first time deal negotiations, and puts a lot of the pressure on me to sell quickly. 

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Bob Stevens
Pro Member
#2 Classifieds Contributor
  • Real Estate Consultant
  • Cleveland
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Bob Stevens
Pro Member
#2 Classifieds Contributor
  • Real Estate Consultant
  • Cleveland
Replied Mar 22 2024, 05:46
Quote from @Adam Reilly:

I've been working on building a land flipping business and currently have about 8 leads in active negotiation and 3 signed purchase agreements, with 1 working through funding. I think that the deals I have on the table and the ones likely to come in this year (I have a very consistent mailing schedule of blind offers), I will need to ramp up the money side, but that has been my biggest struggle so far. I've been going to local meetups looking to find some interested financers, but most or all of them were only interested in house flipping or LTRs. 

I could use some help finding some places or people that would be interested in funding these types of deals.


 If your flipping, why do you need money? Just flip the contract , 

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Joseph Powell
  • Lender
  • Cleveland
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Joseph Powell
  • Lender
  • Cleveland
Replied Mar 22 2024, 06:41

Easy Day Capital is perfect for you! Feel free to reach out to me! [email protected] 

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Joey Zawacki
Pro Member
  • Investor
  • Macon, Ga
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Joey Zawacki
Pro Member
  • Investor
  • Macon, Ga
Replied Mar 23 2024, 05:47

This is a lot more detail and you will get proper responses from your peers to direct you in your search

PML will want first lien positions. PML don't like to be in it longer than 3-4 months. I've never seen an PML in a deal for 12 months unless they are partners on a deal and getting equity share. Expect high interest rates of 15-25% on a PML loan until you establish more experience and a track record. They have higher associated risks. PML doesn't want to deal with the hassle or burden of selling the property, so until you get more experience under your belt, I suggest HML. Find a HML broker and tell them what you're trying to do and then decide what works best for your strategy.

There is also a LOC (line of credit) option. If you have any equity in rentals, your personal home, stocks for collateral, whatever, there are HML that will do LOC. I did this when I first started my fix and flips for acquisitions.

You must have a solid and well thought through exit plan. And for PML you need a plan A and a plan B. I would put together a professional prospectus outlining exactly what you do, and what your goals are, and your track record when soliciting PML. If you have your business model and business plan in writing and outlined for an investor, you’re more likely to get a vote on the line. 

you can join different FB groups, or in here, and find Land flippers and private money suggestions

My HML broker works with 50 different lenders and would be a good place to start.

Cory Williamson

[email protected]

With all the new wholesale laws coming out, you will need to check the laws of each state you're working, when flipping the paper if you have an end buyer pre-sold at closing. New regulations are coming down HARD, and "they" (NAR and state regulators and national level clowns) are making buyers take ownership for a length of time before a resale. Each state is different, but I know there are strict regulations (Oregon just passed a tough one). I do double closes when flipping notes at closing. Even those will be weeded out with time.


Good luck with your new business. Stay persistent and consistent.