Southeastern_Mor
2 Posts |
 Posted - 07/03/2008 : 10:06:39 AM
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I need proposals on two loans for a customer in Georgia. The first would be a raw land deal and the second would be a development deal. Feel free to make a proposal on either or both loans. I think that private hard money is the way to go.
The details: Flintstone GA 30725. The deed is currently in the name of a new LLC. This is a new company and has no financials. This company is owned by Robert, president as well as William, Arona, and Michael. Robert and William have foreclosures on their credit report and scores in the low to mid 600s. Arona and Michael have scores in the 700s, but will not DTI off of the taxes paid over the last 2 years.
The property was purchased for $130,000 about 6 months ago, but was recently zoned for a strip mall and it's size is about 5 acres. Since it was granted a variance to build, we feel the land is worth between $800,000 to $1,300,000.
They have about $100,000 in Cd's that they could put in another bank for use as collateral on the raw land deal they would like 50% to 80% LTV. Cash out would be used to fund other land acquisition and for working capital. They understand terms would change with LTV and loan amounts. They would prefer no to minimal cash investment on loan scenarios. They DO NOT want to spend $5,000 or more to find out that a lender will not do a loan. They are willing to pay for an appraisal, if they agree to the terms of the loan before hand and know that a loan will go through and it is just a question of what size loan.
They are ready to proceed with the raw land deal whenever they find acceptable terms. The exit strategy would be to develop the land in 3 to 9 months. We expect to cost of development to be between $2,500,000 and $3,500,000. Developed the income to cost ratio would be a minimum of 1:1.2 and as high as 1:2. Bids for long term leases are underway now.
If it helps meet a company guidelines, this new company is willing to sell the land to a company owned by Michael and Arona. Customers believe in full disclosure.
Thank you.
Doug Grammer
President
Southeastern Mortgages
(423) 580-8618
Dougatsm@yahoo.com
GA broker license number 22675
www.southeastern-mortgages.com |
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