Loan Request for Land loan in -N/A-, WA, 98823

Request #3695522 by Lender

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4/13/2023 5:41:43 PM
-N/A-, WA, 98823, USA Show Map
35.35 %
$150,000 - $250,000
Property Purchase
OPPORTUNITY: I have a 41 acre parcel in contract (Stewart Title & Escrow, Moses Lake, WA) for $140K and a local builder (experienced) on board. The land in question is in the growth path of Ephrata, Washington. The plan is to acquire and subdivide the 41 acres into 8 5-acre plats and then sell the plats to local builders, encouraging higher-end, large, custom homes, like 'barndominiums. With power, community water, and driveway access each 5 acre plat should sell for a realistic $225K as 'ready-to-build'. Aggregate value for the 8 5-acre (recorded survey and deeded) building lots could reach past 1.5M. My plan is to sell 5 of the 8 lots and to retain 3 lots for my own family and my own build. DEVELOPMENT PLAN: The 41 acres is in the growth path for Ephrata, WA -- I'm looking for $350K (ceiling) to cover the land-acquisition ($140K), surveys ($25K), short-platting ($15K), install a community well ($32K), and to bring electrical power onto the property ($15K for the 1st lot and then $11K for each subsequent lot). Site work (community private roadways, driveways, etc) is also part of the initial project and I anticipate up to about $105K for a private gravel road, driveways, etc. The roadway improvements are being required by Grant County along with the usual right-of-way and easements. Noone can build anything on this property without meeting the County requirements. PROJECT COST: $140K Acquisition $ 85K Surveys, plattings, infrastructure $105K Roadways/road improvements (County mandates) -------------------------------------------------- $330K Estimated project costs $ 20K Contingency -------------------------------------------------- $350K LOAN: LAND DEVELOPMENT / INFRASTRUCTURE & PLATTING My lowest safe number with the $105K buffer for road work and contingencies is $350K. I personally have $42.5K verifiable cash in the bank to cover loan service, origination, and other fees until the 1st plat sells. As I stated: Seller has accepted my offer at $140K and the deal is in escrow/title as of April 2nd, 2023. EXIT STRATEGY: Sell the first two 'ready-to-dig' 5 acre lots by years end at market value (estimated $225K). Use the $450K proceeds from the two sales to pay off the land-development/infrastructure loan. My intent is that everyone involved is compensated appropriately. In the future, I might want to fund a spec-home on the 3rd lot after the 1st two lots sell and this plan completes.

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