Hi! I am under contract to buy and flip a house that I am paying $615K for.
The land is on two tax lots so my plan is to sell the extra lot immediately after closing for a projected $275K.
The property on the other lot will be a fix and flip with projected costs of $240K and an ARV of $750K.
I plan to use a PML of 2 points and 12% APY for 70% of the total cost. However, since I am hoping to sell the land first. My inclination is to suggest paying back the PML 70% of the land proceeds (presumably $168K) at that closing and then hold the remaining loan until I sell the house.
Is this what you would do?
Secondarily, if I had a buyer for the land before I close, could I structure the purchase to include them without doing a wholesale deal?
Thanks!
