?s for business and finance majors/workers

by Leander 8 Replies latest jw friends

• 

  Leander

  I'm looking for information on how to get a loan from non conventional lending institutions.

  Here's my scenario, I want to get started in real estate development. My goal is to purchase just enough land to build one single family home and once the house has been completed I'd like to sell it for market value. From my preliminary research I can earn enough cash from that one sale to be able to use conventional lending institutions for any future projects. Also that one project will put me on the road to gaining experience which will be useful down the line when I want to get into bigger real estate projects.

  However I have a small problem. I don't have the money for the down payment that banks typically ask for, which is why I'm seeking a loan from other sources as opposed to banks. So my questions are:

  What might be some good places to look for non conventional loans? (as a rule I'd like to avoid the local area loan shark)

  How difficult is it to put together a well written business plan?

  Whats the best way to find and contact private investors?

  Thanks for any assistance
• 

  joenobody

  Fat Tony of the Simpsons...

  Or Tony Soprano perhaps.
• 

  teenyuck

  hmm, lets see, you have no money and no defined business plan.

  Basically, since you have not written a business plan, no bank would lend to you. Which you apparently already know.

  Try the SBA (Small Business Association). They are the US government entity who will lend to anyone, anywhere, any amount. And, you don't have to be an American, speak english, or know how to run a business.

  I worked there. If you can sign your name on a contract, they will lend to you. (At least when I was there; very high default rate)

  You also might want to take the more traditional route; read some books on real estate investment, take some college courses in accounting, economics and business, save some money and do it the way most people do. By learning and not waiting for a free ride.

  Or try E-Bay. Sell smurfs on-line.

  If it were that easy to get money, make money and make more money, everyone would be doing it.
• 

  Amazing

  Leander: Read your email from me, [email protected]. I shared my office number with you. We need to talk. Buying land and building a home is the most complex and difficult way to start. My professional career is to working with and building investors in real estate. The SBA is not the way to get started right now. If your short the down payment, there are gift money programs (that's right, money you never have to pay back) and many ways to get creative financing. Call me today. It is 9:AM Central Time. I will be available after 11:00AM. Thnanks.
• 

  Leander

  Thanks for the email Amazing, I'll definitely give you a call this morning.
• 

  rekless

  You may try a hard money lender, you will pay throught the nose on interest but if fast enought you could get the house on market and sold if indeed the real estste market is not depressed in your area.

  Hard money lenders still want proof of payment.

  The SBA wants a business plan and they alsao want you to have 20 % of your own money.

  I had a real estate deal going for 125k I needed to come up with 20k.

  good luck
• 

  Reborn2002

  WOW Leander NICE to see your still alive!

  Im all settled in my apartment now finally, it would be nice to catch up with you on things.

  If you would like to get my new number and chat, shoot me an email.

  I also suggest you listen to Amazing, he will give you good advice.
• 

  one

  You have the tipical handicap, LACK OF CASH.

  Your best bet (best interest)is to get the "down payment" one way or the other.

  Dont tell the bank your intention to sell later, your strategic it is a good one.Make sure you have a market once you finish contrction.

  "Sharks" wont pay attention to you. They will kill you anyway.

  Do you own the land? that may help

  Whatt do you know about construciton?

  I am negotiatin to fianance a 40 acre project...
• 

  Southland

  Credit unions are an alternative ... many of them have 100% financing (usually in the form of 95% first and 5% second).