Need help locating funding for this deal

[Hugo Alves]

Fellow BP Members,

I need assistance. I have recently been offered a deal that I am having a hard time finding funding to complete it. Let me explain a little and I hope someone has a good solution to help me.

The property that was offered has the potential to be subdivided into 3 conforming lots, minor sub-divisions. There is currently a small ranch on the property, that is maybe worth $400,000; price of the property is $700,000. The seller is requesting that we close by the end of July; this is where my problem is. I typically use a hard money lender to get this done but, in this case, I will not have enough time to obtain the sub-division approvals before July. I’ve asked if the seller would hold a note, which they’ve declined. I’ve requested for an option agreement for a year, which was also declined. If I try to obtain a standard conventional mortgage, it won’t appraise for the value needed to purchase the property during the approval period.

Does anyone have a solution? We have roughly $150,000 in cash available.

Here’s the data behind the deal analysis:

Subdivide and build 3 new construction single family homes; numbers below include all 3 homes.

$700,000 Purchase

$900,000 Building Costs

2.2M Conservative Resale

[Alex Olson]

@Hugo Alves Have you sourced private money for the deal or considered a syndication? Also what area is this in? What part of the country?

[Hugo Alves]

@Alex Olson

We have considered raising private money but especially with everything happening, many individuals have had to pull cash in due to balances being called due on their lines of credits and such.

I am in Scotch Plains NJ - Union County