Helping a buyer find financing - flood property

[Bryan Bannach]

I’m looking for a little advice on how to help a prospective buyer finance a flooded property I just purchased.

I purchased a flooded property that I am planning to rehab. While I was walking through the scope of work with a construction contractor and a designer, someone stopped by the house. We exchanged numbers and talked the next day.

He’s willing to purchase the house as-is for around 200k. The appraised land value is currently at 100k. He wants to knock down the house and eventually build new. Maybe he does it in one year or maybe 3 or 4. We talked for awhile and it seems like he has good W2 income, great credit score, and low debt. He has enough for 30% down and maybe has some decent equity in his current home as well.

Anyone have any suggestions on how I can help him find financing on this deal? What’s the most the bank would loan based on just land value? I think any new construction loans would have firm timelines? Seller finance part of it? I think I would have to ask for a large escrow that’s not contingent on financing as I would be stopping all rehab plans while he works on figuring out the financing over the next 30-45 days and would incur significant carrying costs.

Thanks,

Bryan