BorenMccall808

banks virtually avoid fresh land. There is no-way to process raw area loans with the assembly line approach to financing. The only method to judge a raw land loan would be to roll-up your sleeves, put on your shoes, and prepare to obtain a bit dirty. It is also essential to review stacks of paperwork, have conversations with state and city governmental authorities, and to make decisions based on an evaluation of numerous odds with the understanding There are no certainties in regards to raw land development. We appear to have touched a nerve with this organic land loan product. It is very popular with our client base, and its easy to understand why. Firstly, the banks pretty much avoid raw land. There is no-way to process raw property loans having an assembly line approach to lending. The only path to evaluate a Fresh land mortgage would be to retract your sleeves, put on your boots, and prepare to get a bit dirty. It is also necessary to review stacks of documentation, have conversations with county and city governmental authorities, and to make decisions based on an evaluation of numerous odds with the understanding that there are no certainties as it pertains to raw land development. Therefore, as it turns out, our only competitors in this niche--as far as I will tell--are other private money and equity sort creditors. Well, for some reason that I dont really understand, a lot of those lenders wont loan more than about 50-55 LTV on fresh land. We feel that this provides a significant edge to us, as we Can provide loans on fresh land at as high as 75-foot LTV. Id like to give one example to you of the kind of thing that people do. Scenario: We were approached by way of a developer seeking financing over a forty acre parcel of land just outside town boundaries of Eugene, Oregon. Our client was in the process of applying for a zoning change, which would enable him to then subdivide the property into four five acre lots. If all went ac-cording to plan, h-e stood to make a very tidy little profit. Problem: Our customer needed financing for 75-foot LTV on raw land and needed to base the value assessment on the future value of the lots. The potential value of the Plenty was in line with the consumer having the ability to successfully have the change and then successfully c-omplete a partition, via the county, into four Split up building lots. Analysis: We went and walked the house with all the consumer. We also visited and went several comparable properties. We listened to our borrowers Strategy and his explanation of why h-e believed it would become successful. We examined all his correspondence with the district and his zoning change software and all of the supporting documentation. Go Here includes more concerning how to mull over this viewpoint. We talked to the region ourselves to measure the probability of success. We spent simply 30 hours researching this project, and ultimately we concluded that our consumer was for real and that his plans were on target and we determined that there was a very high likelihood He could succeed. Solution: We established a 375,000 loan at 75-90 LTV centered on potential value, with an interest rate of 13 per annum and a three-year term. The loan involved a construction holdback for cash to be allocated to development of the lots, and we included 18 months worth of pre-paid curiosity about the loan, so the borrower Might have no cash commitments throughout the devel-opment period of his project. --Jeff Chaney - VP Florida Individual Money Loan http://www.californiaprivatemoneyloan.com.