Searching for hard money

[Taylor Christian]

I am trying to put together a raw land deal. I am not completely new to real estate and have a fairly large portfolio. Have only done buy and hold up until this point. I am planning on moving into land development. I currently do excavation/forestry mulching/etc. I stumbled across a deal that I believe will be a very good “mini” development, to purchase, clean up, and subdivide a small parcel in the county. I paid cash to build my most recent house and am somewhat cash poor. I have good income and credit but at not wanting to go through a bank, partially because of time and partially because I want to make a cash offer on the place I’m looking at. The property is not a large property but it is very raw. This will basically be a flip on a raw property. Purchase, clear, clean up, improve, subdivide, sell.

My question is, how do I go about finding the right hard money lender for this kind of project?

Also, what are reasonable terms for something like this?

[Mark Safrin]

Since you have a fairly large portfolio, I presume a portfolio with standing buildings, perhaps the best way to approach it is to do a cash out refi on one of your current properties to free up equity that you can spend on, for instance, your "mini development".

HMLs willing to lend on land only are not that common. Also if the amounts needed are small then most HMLs won't lend less than $75K.

But pulling equity from an existing property might make a HML easier to find - if the numbers make sense of course.