banks just about steer clear of fresh land. There’s no way to process raw land loans using an assembly line method of financing. The only way to evaluate a

Natural land loan would be to put on your shoes, roll-up your sleeves, and prepare to get a bit dirty. It’s also necessary to review piles of paperwork, have

Talks with city and county governmental authorities, and to make decisions based o-n an examination of numerous odds with the knowledge

That we now have no certainties in regards to raw land development.

We seem to have touched a nerve with this natural property loan item. It is highly popular with your clientele, and it is easy to understand why. Firstly, the

banks just about avoid fresh land. There’s no way to process natural area loans with the assembly line method of credit. The only method to gauge a

Organic land loan would be to prepare to acquire a bit dirty, roll-up your sleeves, and put on your shoes. It is also necessary to review piles of paperwork, have

conversations with city and county governmental authorities, and to make decisions based o-n a review of numerous probabilities with the understanding

There are no certainties when it comes to raw land development.

So, because it seems, our only opponents in this niche–as far as I could tell–are other private money and value type creditors. Well, for some reason

that I don’t really understand, many of those creditors won’t loan more than about 50-55% LTV on fresh land. We believe this provides an important advantage to us, as we

Have the ability to offer loans on fresh land at as high as 75-foot LTV. I’d like to give you one example of the type of thing that people do.

Scenario: We were greeted by a developer seeking financing on a forty acre lot of land just outside the town limits of Eugene, Oregon. Our customer was in

The procedure of trying to get a zoning change, which may allow him to then subdivide the house into four ten acre lots. If all went according to plan, h-e

stood to produce a very neat little pro-fit.

Problem: Our client needed financing for 75-foot LTV on fresh land and needed to base the value analysis on the future value of the lots. The potential value of the

lots was in line with the customer being able to successfully receive the change and then successfully c-omplete a partition, via the district, into four

Individual building lots.

Analysis: We went out and walked the house together with the client. We also visited and went quite a few comparable properties. We listened to our borrower’s

plan and his explanation of why h-e thought it’d be successful. We examined each of his correspondence with the county and his zoning change software

and all of the supporting documentation. We talked to the district ourselves to assess the probability of success. We spent simply 30 hours exploring this

Task, and in the end we concluded that our consumer was for real and that his ideas were on target and we determined that there was a really high chance

that he would succeed.

Solution: We arranged a $375,000 loan (at 75-90 LTV based on future value), with a three year term and a rate of 13% per annum. Browse here at image to learn why to provide for this enterprise. The loan involved a

Structure holdback for cash to be used on develop-ment of the lots, and we included 18 month’s worth of pre-paid fascination with the loan, so the borrower

would have no money commitments during the develop-ment period of his project.

–Jeff Chaney – VP California Individual Money Loan

http://www.californiaprivatemoneyloan.com.