HELP!!!!New Investor...First Deal..Loan Issue!!!

[Conrad Feh]

Hi BP family,

I am a new investor and currently have a contract on my first potential deal, but having some issues getting financing and needs some advice. Here is a breakdown of the issue:

Property/Land is in the Alpharetta/Johns Creek area in Georgia, an affluent suburb located in Fulton County.The city is a northeastern suburbs of Atlanta.According to Money magazine, Johns Creek is the 13th highest-earning city in the United States. Johns Creek's public schools consistently place among the top in the nation. Chattahoochee High School, River Trail Middle School, and Dolvin Elementary are National Blue Ribbon Schools of Excellence. Northview High School has three times won the Governor's Cup for the state's highest SAT scores. Great area/city overall and as they say…location…location…location!!!

I currently have a contract on the property/land and seller would like to close by the end of the month 29Sept2016. Original asking price was $295,900, and I was able to bring It down to $200,000. The seller is in a distressed situation and pressed for the cash.

Property is a 1.01 Acres Lot, not in a subdivision, and currently zoned AG1. Seller has not had to pay taxes in years since it’s currently zoned as AG1.

The property has been Pre-Approved Rezoning to Allow for Sub-Dividing and Building 2-4 Homes.

There is currently a single family home on the property there now, built in the 1950s, but will have to be torn down.

The family are really selling the LAND, not the house on the land.

I currently have 20% of the 200k and trying to get financing to get the property/land, but having issue obtaining a Land Lot Loan, which I was told would be required for this type of property/land, since the property on there is not livable, and so therefore a residential loan will not work.

My plan honestly for this property/Land was to purchase and hold for about a year or less, and as it appreciates, put it back on the market for $300K plus. Or get the property in my hands, do a few more deals, maybe flips to get some more liquid cash, or connect with a private investor or a builder/experienced investor who knows the ins and outs to do the construction on 2 potential luxury single family homes (comps in the area are between 400-700K) or 4 townhomes (comps around 325-450k in the area)), and actually build on the land. As I said, this is in a prime location: Johns Creek Alpharetta, Georgia. The property was previously under contract with another buyer for $290k, but I was told by the sellers agent that they were having financing issues and the deal did not go through. Maybe they were going through what I am going through now. As I said, the seller is in a distressed situation and really pressed for the funds to take care of elderly parents, who are the original owners of the property.

I was told by a reputable bank in my area that handles land lots loans, that I don’t have enough liquidity and I would need at least $100k in my bank account to move forward.

So I am in a serious bind right now and do not want to lose out on this opportunity.

I hope I have broken down the issue well enough. Please advise…All BP Experts!!!!

[James Han]

This might be a great opportunity to wholesale the property. If the house is what it is you say with supporting comps then i dont see why a cash heavy investor looking for land wouldn't purchase this one from you.