New Member, New Braunfels Texas

[Justin P.]

Hello everyone, my name is Justin Pettes and im a noobie.

Im a 20 year old working at a distribution center making $2,000 a month no bills(which means no credit). I found this sight from a youtube video and decided to join.

I found a really good deal in my area(4.76 acres land for $35,000) I was In search of some lenders willing to give $35,000 to a 20 year old with no credit. I don't really have much of a down payment because I just got back from a vacation in Chicago. I would have $1,000, but that's it. This deal really seems too good to pass up though. My town is growing very fast and just 10 miles down from the property, houses go for $200,000 sitting on a quarter of an acre. Im really desperate for this loan.

Any ideas of who would be able to grant this for sure? I don't care about interest rates either.

[John Hauser]

@Justin P. :

My advice is to back up a couple steps from financing the deal and make sure it's a good deal to start with. If you're not an experienced investor, there will almost surely be things about the deal that you haven't spotted yet. So it might be a great deal, but the devil is in the details and I would recommend you think through all the things that a lender might want to know. What are the carrying costs (taxes, etc.) for the property? What is the market rate for undeveloped land in that area? Why is the seller selling at such a discount? What are the risks (environmental problems for one) and is the seller warrantying the property? Do you have a developer lined up? What will you do if development does not expand to your area as planned? Sounds like you'd like to move quickly so a couple suggestions are (1) post the details of the deal on the Deal Analysis Forum, explain the deal and solicit opinions; (2) contact a real estate attorney and get a sense of what it would cost for an attorney to represent you at closing, explain your concerns about the risks, and see what can be done to mitigate them. I really don't mean to take the enthusiasm of your approach but especially if you are asking someone for money, you'll have to show you've thought all this through. If there's anything positive about needing lending, it's that it forces you to be more thorough.

As far as financing goes, I have a couple suggestions. One, you may have already exhausted this option but is there anyone in the family who might help you with your situation? Maybe cosigning on a loan or lending you the money until you can build up your credit. Second, you may want to bring in a business partner on the deal, someone who has cash and is willing to go for the opportunity with you, since you were the one who found the deal. That's all I have for now, but good luck and let us know how it turns out.

John