What would it take to get financed for some raw waterfront land on a lake? Plan would be to survey and divide into lots. It's about a 20 acre tract of land. Cost is under 500K for the property.

Jbob04 said:

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What would it take to get financed for some raw waterfront land on a lake? Plan would be to survey and divide into lots. It's about a 20 acre tract of land. Cost is under 500K for the property.

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usually a minimum of 20% but might be 25%.

Min 20% equity of cost of acquisition AND lot development. Could get an equity investor to contribute the equity. I've seen people buy and just create paper lots that increases value. Also seen buyers partner up with a home builder (which doesn't develop lots) to help fund the development of lots that the builder then purchases.

Are you talking a loan just to buy the property or buy and develop as said above?
Do you have utilities (water, sanitary sewer, power, cable) to the property?
Do you plan on constructing the street(s), wet utilities, and drainage?

I'd say your chance of financing the deal increases if you get the lots under contract to a builder first.

Don't go maximum leverage. Give your self some room to maneuver when you turn up hidden costs.

You might already know this, but the soft costs are what kill a lot of people. Especially when it's their first deal. Talk to a civil now.

Jbob04 said:

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What would it take to get financed for some raw waterfront land on a lake? Plan would be to survey and divide into lots. It's about a 20 acre tract of land. Cost is under 500K for the property.

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You going to be able to subdivide into lots and sell separately if you finance the purchase?

Where? Location would also be part of the equation.