Lending Ideas for a large (for me) purchase

[Aaron Armstrong]

Hello all!

I am looking for advice or ideas on how to make this deal work.

Property description: Recent appraisal ~ 4,000,000 - 400+ acres multiple dwellings and buildings. I have a business plan for cash flow after purchase. Close to me locally, about 15 miles from my home.

Auction- potentially going near 1 million, but 35 days closing with a nonrefundable 100k ( I wouldn’t want to go over 1.2 total with buyers fee 8% )

Me personally - net worth 1.2

Liquid- 400-500k

Banker- 700k - I have a good relationship with my banker, but I have trouble collateralizing 700k. I have a few lines for my construction company, and he is trying to use the financials of it to make it work and currently talking with him.

I don’t come from wealth, so it was a quick trial from family. I have a friend with that much in real estate, but can’t get it liquid fast enough for me to risk 100k

In my head ( correct me if I am wrong of course )

-Total equity - 4 mil

-I bring 400k

-Loan for 700k until purchase, then refi Into more favorable terms.

- cash flow pays the (high, IMO) taxes and balance on loan; net worth jumps up 3 million, cash flow a fair amount on the 400k I have invested. I probably could get more cash flow elsewhere, but I like the thought of my wealth in the land long term. And it’s beautiful, so I would like to keep forever.

More of a brain dump, I know. I apologize.

I am looking forward to any feedback and will be much appreciated. 😊. And a big thanks to BP!