RE Development Question? Somewhat complex situation.
There is a self storage facility for sale near where I live. The facility is right near the interstate. Part of the sale includes and additional 2 acres of land which is right beside the facility. The price is $600,000 for the 1.7 acre facility (60 units) and the 2 acres. I want to buy the facility and land but plan to develop a medium sized hotel. I have developed several over the past few years. The question I have is I don't want to have both the facility and land under one lien since I want to do a separate development. I spoke with the seller and they said they would accept two prices. I would pay $1 for the 2 acres of land and the remaining for the storage facility. This way the land I would own without a lien. Then my goal is to go to a bank and have the land used as equity for a downpayment. Is this possible or will the bank not consider the land since I only payed $1 for it?