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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Nobody can answer your question except you Posted by Tom on May 18, 2009 at 7:08 AM In Reply to: Pitfalls of seller financing 2nd loan. posted by Sara_CA on May 17, 2009 at 6:11 AM First, I'm surprised in this market the property would sell. So maybe the property's price or terms are "right" for the buyer. Sounds like the first will be Federal Home Loan Bank. You say the property is priced right for agricultural use (presumably the land is tillable). Maybe, maybe not. You didn't state what the price per acre was. The way to make money in raw land is to buy it cheap and get it rezoned for higher use (in this case most likely multi-family or commercial). It takes money and an really good RE attorney. Depending upon the project zoning it can take an exceptional RE attorney whose specialty is zoning, and you may have to hire an out-of-town gun, although hopefuly you wouldn't in this case. Keep in mind that college towns usually have the liberal mindset and they tend to be anti-growth environmentally friendly so rezoning may not be a slam dunk. It can be done but takes more $$ for concessions and attorney's fees. It doesn't sound like your pockets are deep enough to bankroll any rezoning. Realistically it comes down to how bad you need to sell the property. Keep in mind if you turn down this offer it may be several years before you sell it. I'm of the opinion that if you're going to take back a second be sure you getting top dollar and the terms are right for you. Of course you want plenty of equity cushion too. I'd suggest a 3-5 year balloon with 30 yr amortization on the second. You probably won't be able to get it, but if you do it tells you how much the buyer wants the property and how good the buyer thinks the price is. A word of caution with a 740 credit score the buyer may not have a track record of developing land and rezoning, so this is another risk to factor in. Follow Ups: Correction Tom 7:33 AM, 05/18/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : First, I'm surprised in this market the property would sell. So maybe the property's price or terms are "right" for the buyer. Sounds like the first will be Federal Home Loan Bank. : You say the property is priced right for agricultural use (presumably the land is tillable). Maybe, maybe not. You didn't state what the price per acre was. The way to make money in raw land is to buy it cheap and get it rezoned for higher use (in this case most likely multi-family or commercial). It takes money and an really good RE attorney. Depending upon the project zoning it can take an exceptional RE attorney whose specialty is zoning, and you may have to hire an out-of-town gun, although hopefuly you wouldn't in this case. Keep in mind that college towns usually have the liberal mindset and they tend to be anti-growth environmentally friendly so rezoning may not be a slam dunk. It can be done but takes more $$ for concessions and attorney's fees. It doesn't sound like your pockets are deep enough to bankroll any rezoning. : Realistically it comes down to how bad you need to sell the property. Keep in mind if you turn down this offer it may be several years before you sell it. I'm of the opinion that if you're going to take back a second be sure you getting top dollar and the terms are right for you. Of course you want plenty of equity cushion too. I'd suggest a 3-5 year balloon with 30 yr amortization on the second. You probably won't be able to get it, but if you do it tells you how much the buyer wants the property and how good the buyer thinks the price is. A word of caution with a 740 credit score the buyer may not have a track record of developing land and rezoning, so this is another risk to factor in. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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