Is it hard to get financing with equity and a good business plan

[Annette A.]

I own the land in Maine near a major city with a value of about $42,000. I am looking into building 4 seperate cabin units at a cost of about $195,000.  I talked to a local realtor he thought it was a great idea, that the area is condusive to it with the colleges and hospital near by. It would be a inc business/ accomodations ran like a motel of short term fully furnished housing. At 30% occupancy it would bring in about $60,000 a year; upwards to $200,000. Cost of running would be estimated around $36,000. on low end. And as a escape route it could be rented as monthly houseing in bring in about $6,000 a month, which would well cover a loan and cost.

Not to mention the value of finished units would be around $500,000-600,000 giving it a high equity value.

Will these factors make it more marketable for finding financing? 

[Brent Coombs]

@Annette A., if you can build each cabin for $50k on land worth $10k pro-rata, and sell each for $125k minimum, well done. Even better if you can get up to $50k income from each of them per year (ie. why sell straight away)?

Is owning the land, with no extra deposit, enough equity to convince a Lender to lend you the $200k you need? One way to find out: ask them.

Who owns $40k worth of land but has not a cracker extra to their name? That would be one of my questions if I was a Lender.

Are those numbers you quoted REAL? That would be another question I would be asking. Make sure you have good answers to both those questions. Cheers...