I had a client call me out of the blue the other day asking me about doing a cash out refinance for a lot loan. Immediatley I thought yea right I am wasting my time. So, I looked through the different investors I have on board and nope, nada , no way! I could do a rate /term refinance but not a cash out. Realistically I thought it, how can you really take money out of land.... Well, I spoke to a good friend of mine and found a home for it.
I didn't stop there because I wanted to give him another good option which was to do a construction loan. After all, the land is worth almost $1mm why not build a home and you'll have equity of $2mm, double your profit.
I maintained contact with the gentleman and told him I will find out about doing a cash out though the terms may not be pleasing. In addition, I talked to him about building a home on the lot and at a later time doing a cash out refinance. He sounded interested so I am putting together a proposal for him worth $2mm. I have a very strong Construction to Perm lot loan program available with Stated Income....Its a one time closing and very low fees!
If anyone is interested in building a home on a lot or buying lots get in contact with me for details.
I will post you on the outcome soon!
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