Land
I have an oppertunity to get a 550K piece of land in CA for 350k. I am cash poor but have good credit. What is the best LTV I can expect? Also is an interest only loan possible?
[ Edited by george7963 on Date 03/04/2007 ]
raw land tends to have a low ltv.
I was not able to find > 65% LTV.
Bank of america will loan 95 percent ltv with good credit. They would here anyway.
Hi there well if you are still in the market of purchasing that raw land, shoot me an e-mail and we can talk I know for a fact 65% LTV is easy...are you saying they are selling for $550,000 and you only need a loan amount for $350,000? If so you are at 63% LTV and I can assist you in a heartbeat...so just let me know thank you!
I believe I would do a google search and find an apartment assocciation to join in your area and go to their meetings. You will get great insite. Also I would hire a management company for that many units to begin with and maybe at a later date you might consider managing yourself.
You will find that lenders will insist that you have a management co. since you have no previous experience in management of apartments. Lenders want to see atleast 2 yrs experience in ownership before agreeing to letting you manage your own apartment of 100 plus units. Even when you have a management co. you as the owner can still make bad decisions effecting the profitability of the deal.
Good Luck,
Robert
[addsig]
Well the first thing I would advise is to reconsider the 100 unit limit.
In most places there is a nice niche at more than 10 units and less than 100. Thats because 10+ is big enough to scare off the weekend warriors but the big investment companies cannot effectively manage less than 100 units or so. Those big companies have access to cheap capital and can therefore outbid you (or at least are at the price where you should let them outbid you) on big complexes. The weekend warriors invest as if their time had no value.
Always look for structures in the market that give you an advantage.
dont even waste your time with a property that big.
Truely wierd indeed. You could PM Joel (click on his name in the mod list above) and ask him to ban the wierdos- who needs that? It would help us all...
Chris