Land Home Package Financing
Does any one have any insight into land home puchases and financing them? I noticed my greentree repo list had L/H packages and it would seem to me that with land involved you would have to go to a closing and not be able to just send a check like you can with individual homes. Any help would be appreciated.
As far as land/home purchases, I am unsure how to optimize your acquisition strategy.
I do know that there are already-created programs that allow you to sell fixed up land/homes more quickly through temporary seller financing, so that you sell your first lien at closing, providing your profit.
You enlarge the buyer pool, take as little as 5% down, and turn more volume with this method.
But that is the sell side. As far as buy side, I think you either need private cash, credit line cash, some form of cash at your disposal. Banks interest in these properties continues to dry up fast.
Best, Dave
My REI group does these land-home package financings. We like them because we can get a high return on our money.
SFR financing is pretty competitive but not so with the MHs on land. For some reason the normal lenders don't take to the MH on land deals.
Remember too, that a Land-Home Pkg is really just RE so normal, usual RE closing practices would be followed...P&S Agreement, escrow closing, title policy, etc....no different than any other RE deal.
Thanks for the info everyone, I appreciate it. JT