Hard Money Lender for Agriculture Land

[Chad Otsuji]

Hello everybody!

I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

I have anywhere from 20%-25% to use as a downpayment.

I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

If your company does these loans, or if you know of anyone who can do these loans please reach out!

Thanks,

Chad Otsuji

[Jay Hinrichs]

Quote from @Chad Otsuji:

Quote from @Chris Seveney:

Quote from @Chad Otsuji:

Hello everybody!

I am looking at purchasing a property that was previously a 200+ acre lot that has been subdivided into 2 acre lots. 

This property is considered Agriculture or (AG). However the issue that I am running into is that it does not currently have a Tax Map Key. So, it does not qualify for traditional financing or USDA financing. The owner is estimating that the Tax Map Key will be available in 10-24 months. 

There is no home built on the property, and it is not zoned to have a property. It is zoned for farming purposes only. 

The owner also needs closing to be around 2 weeks, and traditional financing takes a bit longer. 

The only solution I can come up with is to get a hard money lender, since they're typically able to close a lot sooner.

Does anyone know of a Hard Money Lender that is willing to lend to raw agriculture land in Hawaii? 

I have anywhere from 20%-25% to use as a downpayment.

I have two rental properties that can be used as cross collateral, however they're in different parts of the country. Those hold about $250k worth of equity. One is at 50% LTV, the other is at around 67% LTV.

My exit strategy is to refinance into a Longterm USDA loan, after the Tax Map Key is issued in 10-24months.

I plan on farming crops on the land. I am estimating to generate $8k per month net profit, on the low end. 

If your company does these loans, or if you know of anyone who can do these loans please reach out!

Thanks,

Chad Otsuji

 If you need to close in two weeks a local mortgage company is probably out of the running. Just be aware this money will not be cheap for this deal, could be as much as 20% or greater. 

How much is the loan amount you are looking for? Do you have the appraisal done? Do you have title company selected and title cleared?

We expect high interest, but 20%+ seems very high. Would it still be this high with my 2 properties as collateral? 

Seller is asking 260k. We have about $50k. Loan amount of $210k 

Title company is selected. No appraisal or clear title yet. 

The owner said we can have an extension, if it’s within good reason. So 3-4week closing may be possible. We just need to make sure the lender can do the loan without the tax map key 

google HML  Honolulu there is a pretty big HML in that city I suspect they could do this without much problem.. U can ping me I have a friend their in Honolulu that may look at this as well.