What do you think about my idea to buy land I can’t afford???

[Eric Stanley]

I want a piece of prime land to build my dental practice and house a couple other tenants. It’s 2 million and over my personal budget.

Here’s my idea:

“Partner” with a few other investors to purchase the land. But they would be bought out of the partnership at the time of refinance after full construction. I would simply pay them a percentage for partnering temporarily like they were a hard money lender.

Does that make sense. I’m new to this. All I know is I want that land!

Thanks

[Patricia Steiner]

$2M in dirt...really?  It's called "financial suicide."  A couple of other tenants?  That's not going to work either. "Partner?'  You're not looking for a partner - you're looking for someone with deep pockets to carry the land purchase with little return for the risk. But there's more...how will you fund the development costs like:  engineering, municipal/impact fees, water/sewer, utility connections/septic/sewer, legal fees, soil testing, permits/fees, road construction, more.  All of that before you even get to the cost of constructing the building.  And, that's assuming that it is properly zoned, there's no contamination from a prior use, and if it's even a buildable lot.  It's also assuming the municipality will provide utilities...more and more, those are held hostage in return for impact fees that support the infrastructure surrounding it.  When all said and done, a project this size will require high density to make it a financially viable option.  

Leave the dirt...there are a lot of other options for taking an existing, non-customary building and making yourself a practice location that is over-the-top exciting.  

Best...