Land Developer Programs to Sell Land with Owner Financing
The Purchase Facility Program allows a land developer to sell property with owner financing with just 5% down. The developer keeps the down payment, and a 15%reserveis withheld (refunded quarterly), giving him cash equal to 86% of the sales price at closing. The developer's total return is 99%of the sales price. There is no discount if loans are written at the funding source's buy rate (prime + 4with a floor of 10%) + 1% fee. No bank financing is required. Other benefits include 24 hour credit approval, fast closing in the developer's office, and quick funding within 48 hours of receipt of complete documentation. Land contracts do not have to be converted. No appraisals are necessary. Examples of selling land with owner financing.
Developer Credit Line
This program helps land developers who sell property with owner financing to borrow against their land receivables rather than sell them. Developer credit lines are available from $500,000 to $5,000,000. Maximun loan size is $100,000. Sovereign Capital's funding source will advance from 55% up to 90% of the loan amount, based on consumer credit and terms. A 5% down payment is required (waived with 12 months seasoning). Minimum interest rate of prime + 4.5%+ 1%fee. Terms up to 360months. 24 hour credit approval, fast closing in the developer's office, and quick funding within 48 hours of receipt of complete documentation. No appraisals are necessary.
The Acquisition and Development Loan Program is reserved for land developers, who currently sell land to end consumers with owner financing through the Purchase Facility Program, and who have already established aseasoned relationship with the funding source. This kind of loan is structured to provide a portion of the funds necessary to purchase, subdivide and resell property which is sold to end consumers with owner financing. This program is offered to assist the land developer in creating an inventory of land receivables, which will eventually be sold or pledged to the funding source. $250,000 to$2,000,000 loan amounts. Minimum rate of prime + 4% +1%fee. Terms up to 36 months. 25% paid in equity is required. Full recourse and full guaranty.
Portfolio Purchase Program
For land developers who have qualifying portfolios of land receivables that they want to liquidate. Deeds of trust, mortgages, land contracts and contracts for deed are acceptable for all kinds of rural or recreational property. Minimum portfolio balance of $750,000. Purchase price will normally range from 70% to 85%. 5% minimum paid in equity is required. Must have clear title. No seasoning is required. No appraisals are necessary. There is a 1% fee. Quick closings upon receipt of proper documentation.