Found Great Property Need Advice
i am a business owner that does home maintenance. well i do a lot of work for a realtor in town well they called me to fix up this 10 acre homesite on a lake . well anyways to make a long story short i got in good with the owners and they agreed to do a lease option with me. the propertywas appraised at 695,000 and they were going to put in on the market for 650,000 .they agreed to set the price at 580,000 for me. what i would like to do is develope 4 acres of it. the area is is growing fast with great new homes in the area. what should i do first and what kind of loan should i get 
Unless you are a pro land developer, I would just take the option and quickly try to retail it for $630k - $650k. You can make a quick $50k - $70k by selling it.
If you only made $30k, would that make your week? Whatever you do, don't bite off more than you can chew, take the money.
i have been in the building industry for over 20 years and have a lot of contacts in the business i was just wondering the best financeing to get.
I would go to a local bank and get a working line of credit similar to a construction loan with disbursements for supplies. You'll need a rough draft or business plan specifying what you want to do, how you plan to accomplish it and your credentials. Just like buying your first house only with a few more zero's
[addsig]
red flag. What was the purpose of the appraisal for which they provided or are willing to provide? Was it for a previous refinance of the property? Before I did anything I would want an independent appraisal and not one done previously for the owner. If it's truly worth $695,000 why would they intend to list it for $650,000? And why would they sell it for $580,000? That's a $45,000 and a $115,000 difference. Quite a spread. Before I purchased it using conventional financing or via owner financing I would want an independent appraisal. If you get conventional financing they will probably only loan money on the dwelling and 5 acres.
[ Edited by landpimp2000 on Date 07/03/2003 ]