From: steelvest@hotmail.com (SteelVest)
Newsgroups: misc.invest.real-estate
Subject: Re: Any lenders for vacant land?
Date: 3 Aug 2004 19:26:30 -0700

"John A. Weeks III"  wrote in message news:<030820041758396075%john@johnweeks.com>...
> In article , bidbonanza
>  wrote:
> 
> > I am buying, six acres, vacant undeveloped land, commercial/industrial zone,
> > located
> > in the growing city planned, closed to freeway and warehouses buildings.
> > This land is worth from $750K to $1.0 M and I paid 1/3 of the current price.
> > There is no utilities such as water or sewage system.
> > 
> > I am looking for a lender who is willing to make a loan if I put $60K to
> > $80K down payment.
> > 
> > Is this a risky business?
> 
> Yes.  Raw land has no real value until someone wants to develop it.
> In addition, it eats while you hold it in the form of taxes, insurance,
> and upkeep.  Finally, you have to be real careful about what land you
> buy since there is unlimited liability for cleanup and damages done
> by hazardous waste -- you can lose everything.
> 
> Banks generally do not want to finance raw land.  They have no way
> to get their money out of it if the loan goes bad.
> 
> -john-

  IF you do not geet all necessary and required approvals and/or there
is
  a subsequent  water and/or sewer moritorium; you have no buyer, you
can't get   financing for tenants and/or a buyer, THE LAND IS WORTH
NOTHING AND YOU ARE   SCREWED.

  Maybe option the land (for one or two years) with these and other
contingencies - and risk A & E,  legal, marketing, fees and costs -
and NOT "the farm" - a/k/a "your ass."

  SteelVEST

  SteelVEST