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ColdFlame
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# Posted: 8 Feb 2017 20:10
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Hey guys,
My wife and I are looking to sell our rental property and reinvest the moneys realized from the sale of that home into a chunk of land which we've found. We are presently having issues finding a lender to provide a mortgage on the property. I recognize that you typically have to go through Credit Unions for raw land purchases, but we're struggling to even find any lenders for that particular area.
Does anyone know any in the Kootenay Lake region? The ones we have found which will lend on raw (no buildings) & off-grid land won't lend in that area as it's out of their service regions.
Credit is not an issue, and we are prepared to pay up to the 50% which may be required for a down payment, and finance the remainder. Does anyone have suggestions? I'm not looking for private, ridiculously overpriced lenders, so those options need not apply. Worst case (or possibly not worst case at all), we may have to make an offer to the sellers and find out if they'd be willing to owner-finance over a certain period...
Any help/advice you guys can offer will be appreciated. Cheers!
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toyota_mdt_tech
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# Posted: 8 Feb 2017 20:31 - Edited by: toyota_mdt_tech
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Who owns it? Will they draw up a contract, have a title company hold the note, both seller and buyer come up with the plan. The middle man title company holds it so no family member butts in if the sellers die etc.
A loan on raw land is tough unless it gets a house. How about a land home pkg, ie you submit plans to build, then its a construction loan, then when the house if finalized and inspected and OK'd for habitation, its rolled into a home loan pkg. The lenders do this all the time.
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bldginsp
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# Posted: 8 Feb 2017 22:24
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Why is owner financing worst case scenario? If they charge reasonable interest it's a reasonable deal. I bought mine on owner financing and paid 7% interest for 8 years before I was able to refinance it.
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Just
Member
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# Posted: 9 Feb 2017 11:01
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In Ontario farm credit corporation will lend money for small tree farms .
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razmichael
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# Posted: 9 Feb 2017 11:02
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Quoting: bldginsp Why is owner financing worst case scenario? If they charge reasonable interest it's a reasonable deal.
Also worked really well for us (home not cabin). Sellers provided financing for two years until we started building and got far enough along that the bank was falling over backwards to help.
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ColdFlame
Member
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# Posted: 9 Feb 2017 14:03
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Owner financing doesn't have to be a worst case scenario - poor wording on my part. I do not believe it's as common in Canada as in the US, and when I have seen it, the interest rates are usually a lot higher than what traditional financing offers. We haven't approached the sellers about owner financing. As far as we can tell, the property has been owned by the same people (via a shell corporation) since the 1980's. We will approach the sellers via our realtor and inquire whether or not this is a possibility.
Quoting: toyota_mdt_tech A loan on raw land is tough unless it gets a house. How about a land home pkg, ie you submit plans to build, then its a construction loan, then when the house if finalized and inspected and OK'd for habitation, its rolled into a home loan pkg. The lenders do this all the time.
We're not ready to build yet. The plan is to get the land, sit on it for a year or few, probably build a lean-to type structure for our trailer to live under, and utilize a solar trailer I have (6 x 280w panels, etc...) for electricity in the meantime. I'd like to experience the property across all seasons before deciding on our dream spot to build - there are beautiful lake views from the higher elevations on the property, views of a glacier, and beyond that, there is a lot of mature timber (Cedar & Douglas Fir trees primarily), and even a small lake (pond?) that's ~1.5 acres in size.
I appreciate all of your suggestions.
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ingrowdisback
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# Posted: 27 May 2020 10:08 - Edited by: ingrowdisback
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--- [spam message deleted] ---
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toyota_mdt_tech
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# Posted: 28 May 2020 15:20
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Last poster, I'm calling BS, but if anyone came to me threatening to take my land with a gun, they would have ventilation holes installed of about the 40 caliber size, but possible .223 NATO stuff too, ie 5.56X45
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ColdFlame
Member
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# Posted: 28 May 2020 15:40
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I'd call BS and go so far as to say that was a (not so) clever way to hide some spam. Resurrecting posts from years past seems to be standard operation for them.
While I'm in here, I guess I can provide an update to state that I never did buy that property. Financing was cumbersome with raw land, and I ended up finding another property near to that 50 acres that had significant infrastructure already in place. A house (sadly, not a small cabin - a house far larger than what I'd intended), power, water, established gardens and perennial beds, various fruit & nut trees, etc.... It comes with 33 beautiful acres and a year round creek that gravity feeds our pipes.
Though the upfront cost was higher than we'd intended to spend, we felt the value was there and that we would have ended up spending far more on the other property in the long run getting it to where we'd like it.
I haven't been on the forum in quite some time. I'll have to take some time to look around and get re-acquainted on some of the members projects I used to look forward to seeing updates on. Cheers!
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