All Forum Posts by: Ron T.

I own 2 properties in the area. (20 in total) I'm cash flush and looking to expand.

If serious message me and lets talk.

Ron

Not much. Depending on where in Calhoun County 2 acres is worth somewhere between $2,000 and MAYBE $10,000 total.

I own right at 2 dozen rental properties and thought I had creative financing "behind" me as my business has matured and my portfolio loan has grown with it.

Until...

We are looking at purchasing a large tract of land. This would not be an investment, per se, but more of a homestead. With a possible very long term investment potential but that is not the intent. The land is in a very rural area and is all "unimproved " farm land. I had looked at it maybe 12 months or so back and the owner was asking $400k which was a bit over what we were looking to spend ($300k). 

My primary reason for trying to stick closer to $300k was to minimize the down payment. With raw land of course you are almost always looking at 25% down, and $75k I can manage and not even dip into my comfort level of reserves but that is just about the absolute max. At $100k I am $25k into my "safety net"...and I am very risk averse.

Anyway after seeing the property sit a year I decided to reach back out to the owner (its a FSBO) and have another conversation. He claims he has been offered $350k and turned it down, because he "knows" (rightly so) that his value is right. (Side note - he has done a horrible job marketing the property. Not online anywhere. Just a small for sale (like you would place in a car windshield) sign hung on a fence that is only visible when traveling from 1 direction in a very rural area. There is an active appraisal on the property for $440k that I have seen. Its legit.

So over a cup of coffee this morning he agreed to at least consider a partial owner financing scheme. Where I would pay his $400k asking price and he would finance $100k back to me for 10 years interest free with a 20 year amortization and a balloon at month 121. He would be secured by a second position. In theory this would allow me to buy the land and him to cover my down payment and allow me to keep my cash reserves. Seems like a win-win.

Until....Talked with a lender this afternoon, a specialized farm and agricultural lender, and they wont consider it without me physically paying 25% down at closing. They want the check made out to them or the escrow company and them write the full purchase price amount check to the seller.

So...any ideas? 

I thought about approaching the seller about writing me a check for $100k after the initial closing and doing a second mortgage type arrangement. But that certainly is "messy".

Thanks in advance for any help/ideas/thoughts.

Lad purchasing is totally different.

Conventional conforming loans dont apply to land.

In my experience land requires a minimum of 25% down, a maximum of 20 year terms and rates will run half a point higher.

I've used Tim Lee with Entegra also (used him before he joined Integra) Tim is aggressive and good as well. Havent used Entegra yet

Another option I would strongly consider is South State Bank, formerly SC Bank and Trust.

They manage my portfolio and ARE AMAZING!

Creative and fast.

They do a 20 year amort table with a 5 year rate check in.

You aren't getting the right install prices.

I just last week had a 3 ton package unit installed in gaffney and all duct and floor vents replaced for $4,200 and that included a $400 weekend fee because I wanted it rushed.

Brian,

A couple questions, if I may.

Is the property in Mauldin? If so I own a property there as well and know the area. There are certainly some less desirable areas, but none that are the war zones hat some may be envisioning if they dont know the area. In fact 2 AC thefts like that actually points to a small problem to me, not a large one. I am betting 1 guy stole both. That is unless....

Are you positive the unit was ever replaced? You saw the new unit with your eyes and verified it was installed and working?

I almost wonder if you dont have a seller problem?

Feel free to PM me the details, if its a good deal I might buy you out and keep you whole.

No AC...lol a landlords dream.

Simply put not even feasible where the OP is buying. Summer temps in the triple digits in 80+% humidity are the norm not the exception.

I wouldn't rent a property out in SC without A/C ...that's a recipe for a lawsuit. But I sure wish because that is hte #1 source of nuisance calls. The A/C isnt cold enough, etc.

Depending on size and configuration OP can do somewhere between a little and a ton better than the stated price.

@Tavaris Little

$8k for a mobile home in the upstate could be anything from a great deal to a horribly over priced rip off.

The devil is in the details.

That said I am an investor in SC and have a few mobile homes and not afraid of adding more. I'd be more than happy to compensate you for a lead if there is a deal to be made there or work out a profit split.

Feel free to connect if you are interested.